HomeMy WebLinkAbout2003-01-14 WSB AGENDAW A TER & SEWER BOARD
AGENDA
Tuesday, January 14, 2003
C OMMUNITY DEVEL OP MENT
C ONFERENCE ROOM
1. MINUTES OF THE DECEMBER 10, 2003 MEETING. (ATT. 1)
2. GUEST : BILL McCORMICK -OPERATIONS SUPT. -U TILITIES
RE: TRIHALOMETHANES (ATT. 2)
3 . GARAGE TAP FOR 3555 S . OGDEN ST . (ATT. 3)
4. HOTEL SE WER TAP AGREEMENT -WINGATE. (ATT. 4).
5 . MEMO FROM CHIEF MOORE RE: SECURITY OF ENGLEWOOD WATER
TREATMENT PLANT AND STORAGE FACILITIES. (ATT. 5)
6. VARIOUS WATER RELATED ARTICLES . (ATT. 6)
7. ENGLEWOOD/CENTENNIAL WATER SUPPLY AND FACILILTIES
AGREEMENT. (ATT . 7)
8. OTHER.
WATER AND SEWER BOARD
MINUTES
December 10 , 2002
A T l o I
The meeting was called to order at 5 :45 p.m.
Members present:
Members absent:
Also present as a guest:
Bradshaw , Cassidy, Clark, Otis , Higday,
Kasson
Wolosyn , Habenicht, Moore
Joe Tom Wood , Water Engineer with Martin
&Wood
1. MINUTES OF THE NOVEMBER 12, 2002 MEETING.
The Englewood Water and Sewer Board Minutes from the November 12 , 2002 meeting
were approved as amended .
Mr. Kasson moved :
Ms. Bradshaw seconded :
Ayes:
Nays:
Members absent:
Motion caITied .
To approve the November 12, 2002
E nglewood Water and Sewer Board
Minutes.
Bradshaw , Cassidy, Clark, Otis , Kasson,
Higday
None
Wolosyn, Habenicht, Moore
2 . CITY DITCH LICENSE AGREEMENT FOR K.C. ENSOR AND WILDACRES .
E nsor Properties and the Littleton Large Animal Clinic (WildAcres , LLC) have submitted
a License Agreement and Construction Easement for crossing Englewood's City ditch
with an access road . The Colorado Department of Transportation (CDOT) is widening
Santa Fe along the City Ditch from County Line Road to Prince Street. This section is
being widened to allow construction of separating medians and additional lanes to
improve traffic safety.
Englewood's City Attorney and the Utilities Engineer have reviewed and approved the
License Agreement and Construction Agreement submitted by Ensor and the WildAcres,
LLC.
Mr. Higday moved;
Mr. Otis seconded:
Ayes:
Nays:
Members absent:
Motion carried.
To recommend Council approval of the City
Ditch License Agreements submitted by
Ensor Properties and WildAcres, LLC.
Bradshaw, Cassidy, Clark, Otis , Kasson,
Higday
None
Wolosyn, Habenicht, Moore
2. NEWPAPER ARTICLE-ROCKY MOUNTAIN NEWS.
The Board received a November 11, 2002 Rocky Mountain News Article titled, "A war
about water." This is an information-only item discussing a water rights dispute on the S.
Platte River over administering underground irrigation water in northeastern Colorado.
4. CAROLLO ENGINEERS -AGREEMENT FOR PROFESSIONAL SERVICES.
The Board received a copy of the Agreement for Professional Services and a Task Order
from Carollo Engineers for engineering services for aqua ammonia storage at the Allen
Treatment Plant and powered activated carbon storage and feed at the Union A venue
Pump Station.
The Utilities Department received three design proposals and selected the Carollo
proposal which utilizes the existing water treatment plant for the ammonia storage rather
than constructing a new building. The proposed design will allow construction of a
permanent feed system and storage area for the powdered activated carbon. Powdered
activated carbon is used when certain river conditions are severe, causing taste and odor
problems.
The Professional Services Agreement describes the Approach for Improvements , Scope
of Services, time of performance and payment and administration of the projects.
Carollo's fee is $127 ,000.
It was noted that time is of the essence in order to have the system operational before
taste and odor occurrences begin in the summer. The Board took an informal vote
supporting this approach and agreed that the Director of Utilities should sign the
engineering contract. When the project is 80% designed, selected contractors will be
requested to submit bids. At that time, the city council will be asked to award the
construction contract to the acceptable bidder.
5. SANITARY SEWER LINING IMPROVEMENTS.
The Utilities' Distribution and Collections crew discovered two sanitary sewer lines that
needed repair during flushing. The lines were videotaped and it was determined that both
8" clay lines were in failure with extensive cracking. The first repair segment is located
in S. Zuni St. between W . Bates Ave . and W. Cornell Ave. for a distance of 271 feet. The
second segment is located between S. Washington St. and S . Clarkson St. north of US
285 for a distance of 326 feet.
Because of dangerous conditions and restricted access, the trenchless pipe rehabilitation
method is being used to minimize traffic disruption and impacts on residents. Bids were
received from two vendors , the lowest being from Insituform at $32,600.40.
The Board informally approved the Utilities Department issuing an Award of Bid and a
Notice to Proceed to Insitufonn.
The meeting adjourned at 6:05 p .m.
The next Water and Sewer Board meeting will be January 14 , 2002 at 5:00 in the
Community Development Conference Room.
Respectfully submitted,
Cathy Burrage
Recording Secretary
American Water Works Association -Waterweek A TT., '2
The law grants IAIP access to all pertinent information , including infrastructure vulnerabilities,
and directs all federal agencies to "promptly provide" IAIP with all information they have on
terrorism threats and infrastructure vulnerabilities. It further exempts from disclosure under both
federal and state freedom-of-information laws all critical infrastructure information submitted
voluntarily to OHS , requires OHS to establish uniform government-wide procedures for handling
such information and establishes penalties for those who unlawfully disclose such information,
including mandatory removal from office or employment.
The bill also authorizes the president to delegate authority for federal critical infrastructure
protection programs to enter into voluntary agreements to promote infrastructure security ,
including with any information sharing and analysis organizations (e.g ., the Water loformci_tigo
Sbi3Jiogan<:JAIJCllY._~i$_C~n.ter).
The department will also include a science and technology division charged with overseeing all
security-related research and development efforts and developing a national policy and strategic
plan that identifies R&D priorities. The division will not deal with relevant public health-related
research, however. The law specifically reserves to the Department of Health and Human
Services the responsibility for research relating to countermeasures for chemical, biological,
radiological, nuclear, and other emerging terrorist threats, including the development of a
coordinated national strategy .
Also included in the bill is a provision establishing an Office for State and Local Government
Coordination charged with assessing and seeking resources needed by state and local
governments to implement counterterrorism measures , providing state and local governments
with regular information and technical support and developing a process "for receiving
meaningful input from state and local government to assist the development of the national
strategy for combating terrorism and other homeland security activities ."
The bill does not include chemical security provisions that water suppliers feared would have
required those subject to the Clean Air Act's Risk Management Program requirements to
conduct separate vulnerability assessments .
Chesapeake not immune from TTHM claims
A Virginia Circuit Court judge recently ruled that Che$apeake , Va ,, is not immune from a lawsuit
by a woman who claims the city fraudulently failed to warn her of the possible risks associated
with disinfection by-products , which she says caused her 1998 miscarriage . In rejecting the
city's argument for sovereign immunity , Judge Norman Olitsky of the Chesapeake Circuit Court
ordered an evidentiary hearing in early 2003 , which will provide the basis for him to decide
whether the case should go to trial.
The claimant is among 170 women who allege the city "knowingly and fraudulently" withheld
information regarding the levels of and reproductive risks associated with total trihalomethanes
(TTHMs) from as far back as the 1980s. Rather than consolidate the claims into a single case,
the judge opted to handle a single claim as a test case, a major element of which involves
whether the suit was filed within the state's two-year statute of limitations.
The suits stem from the city's initial notice in March 1998 alerting pregnant women of potential
reproductive risks from TTHMs , levels of which the city expected to increase between the time
the city removed air stripping towers and began operating a new reverse osmosis (RO) plant.
The notice was part of a CC!mpc;iignto i nfon:ncust9mers of a year-long TTHM-compliance
exemption issued by the state to expedite the RO project. The city, which has never violated
TTHM standards, rng11 l13,.rJy__QQ.§J§IlJ::fMJ ~.'"'.~l$ on the Internet.
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http://www.awwa.org/Communications/waterweek/subscribers/currentissue/ Gt 1
SFPUC to investigate faulty gate valve
r
Heterotrophic Plate Nitrite Temperature Turbidity pH TTHM's HAAS's Total Chlorine
Count Residual
Date Sample Site cfu/ml mg/I c ntu 's ug~ ug/I mg/I
3/28/02 4600 S. Lipan St. 98 u 11 0.23
3995 S. Galapago St. 1.3 u 10 0.16
2710 S. Washington 6.3 u 9 0.17
3535 S. Lafayette St. 19 .3 u 11 0.18
6 MG Tank <0.3 u 10 0.22
414102 4600 S. Lipan St. 1 u 9 0.16
3995 S. Galapaqo St. BDL u 9 0.13
2710 S. Washinqton BDL u 9.5 0.16
3535 S. Lafayette St. 11 u 11 0.17
6 MG Tank BDL u 8 0.1 6
4/10/02 Allen Plant 24 6.9
Post Ch/oramine Conversion
719102 Allen Plant 32
1000 Enqlewood Parkwa' 42
2323 W. Baker Ave . 50
Allen Plant 10 .4
1000 Englewood Prky 12 .1
818102 3MQ Tanks 5 u 23 .5 0.18 0.45
5050 S. Galapago St. 4 u 23.4 0.16 1.03
3535 S. Lafayette St. 6 u 25 .2 0.20 0.51
4600 S. Lipan St. 64 u 24 .0 0.21 0.53
2710 S. Washinqton 2100 u 25 .6 0.38 0.48
2323 W. Baker Ave . 2290 u 26 .5 0.31 0.28
8/19/02 4811 S. Broadway 34 .3 8.9
1000 Englewood Parkwa / 35 .9 16 .6
3380 S. Lincoln St. 42 .8 5.2
2323 W. Baker Ave. 51 6.5
11/14/02 3Mg Tanks 20 u 9.5 0.16 8.16 0.55
5050 S. Galapago St. 290 u 10 0.25 8.05 0.14
3535 S. Lafayette St. 70 u 11 0.23 8.00 0.44
4600 S. Lipan St. 160 u 9.8 0.25 7.97 0.33
2710 S. Washington <10 u 10.4 0.33 8.03 0.66
2323 W. Baker Ave . 410 u 11 .5 0.18 8.11 0.34
11/14/02 4811 S. Broadway 16 .8 5.9
1000 Englewood Parkwa• 16 .4 25
3380 S. Lincoln St. 11.4 4.2
2323 W. Baker Ave . 27 .7 1.2
AT T .. 3
December 10, 2002
City of Englewood Sewer And Water Board
c/o Mr. Stu Fond
Currently, I am converting my garage into
fully handicap accessibly living quarters for
myself. I would like to make a request for an
exception, allowing me to bundle my water
and sewer connections with the main house.
Currently, I am expecting to proceed with
connecting with brand new taps. The
variance is recorded on the deed that it's use
is exclusive to my use only.
W. David Penland
3555 S. Ogden St.
303.806.8528
Cc,rry ,,,:: €Nf:..t..€r.JCC '.::>
C,cmm 1.4.N ,,.,.. i::.c; •.; c....i.->rn € <1 :-
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r:;;.J·~~,co ic110 {' c T y 0 F ENGLEWOOD
COMMUN T y DEVELOPMENT
OFFICIAL NOTIFICATION
TO: Arapahoe County Clerk and Recorder
5334 South Prince Street
Littleton, CO 80166
BOA CASE NUMBER:
MEETING DATE:
SUBJECT PROPERTY:
PROPERTY OWNERS:
2-2002
March 13 , 2002
3555 South Ogden Street
W. David and Tracy Penland
B2084766
5/07/2002 12:29:15
PG: 0001-001
5.00 DOC FEE: 0.00
TRACY K. BAKER
ARAPAHOE COUNTY
The City of Englewood Board of Adjustment and Appeals considered the request for a
variance to convert an existing garage to a dwelling unit that is detached from the principal
dwelling unit and to reduce the required minimum floor area of 650 square feet to 400
square feet. This is a va riance to 16-4-5:B3, Permitted Principal Uses and 16-4-5:03a,
Mini mum Floor Area of the Englewood Municipal Code. Further, the variance terminates
upon ei ther W. David Penland no longer residing at 3555 South Ogden Street or upon the
tran sfer of the property to a party not including W. David Penland, whichever event occurs
first.
The Board approved the va riance request by a vote of 7-0.
'11. ~ ~ton
Recording Secretary
The property owners hereb y ackno vv !eclge that they 1.mderstand the conditions on the
variances granted b y the Board of Adjustment and Appeals and agree to abide by those
conditions. The owners further agree to notify the City of Englewood upon the occurrence
of eithe~ ?f)he.se abo~sted conditions.
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W/Qa v id Penfand
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.dt"r L--ku.a#
Witness
cc: Case File #2-2002
Building Department
Property Owners
1000 Englewood Parkwa y Englewood , Colorado 80110 PHONE 303-762-2342 FAX 303-783-6895
www .ci .englewood.co.us
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delinquent turn-off, a fee of thirty dollars ($30.00) shall be due and payable by the
property owner and shall be billed to the property by the City within thirty (30) days
after the service has been performed.
12-lB-i: Number of Users on Service Restricted.
A.
B.
More Than One Premises To A. Service Connect ion Prohibited: E ach premises
or property or building{§.) situated on a premises or property in a manner
which would allow the premises or property to be subdivided and the
b uilding~s ) sold separately shall be serv"ed .by a .. separate service connection
directly to the nearest main without crossing~ other adjoining premises or
preperey properties and with separate curb stops involving only one account
when water is turned on or shut off. Extension of service to another premises
or building from an existing service connection is prohibited and shall be
subject to shutoff wi.fhout the Gity being liable for any damage. Exceptions to
this requirement may be granted by the City Manager or designee with the
concurrence of the Water and Sew er Board upon a review of a written request
of the property owner, in which the property owner · ustrates with both
written and graphic descriptions , why the exception should be granted.
Existing premises, properties or buildings which do not conform to this
requirement may maintain their service connection configurations unless and
until such time , in the opinion of t he Cicy ::VIanager or designee with the
concurrence of fhe Water and Sewer Board, the service must be separated.
Two Or ~Vlore Users On Same Ser vice Line: In case two (2) or more users are
supplied from the same service line , if any of the parties fail to pay the water
charges when due, or to comply with any ri.tle of the City, the City reserves
the right to shut off the water to tb.e whole service until such charges are
paid, or the rules strictly complied with, and it is expressly stipulated that
no claim for damage or otherwise may be made against the City by any user
whose water charges have been paid or who has complied with the rules of
the City, because of such turnoff, it being expressly stipulated that the
necessity for such shut off shall be deemed to be the joint act of all served
through such service.
Section 2. The City Council of the City of Englewood, Colorado hereby amends Title
12, Chapter 1, Section 4, of the Englewood Municipal Code 2000, to read as follows:
12-1-4: Work to be Done by Plumbers et'" Drai:B:la:yers.
All work on water pipes or fixtures which .. are connected to the City's potable water
distribution system and which are located from the curb stop to a point one foot (l')
inside the building shall be accomplished by a licensed plumber er :h-ainlaye::' under
bond to the City.
Section 3. The City Council of the City · of Englewood, Colorado hereby amends Title
12, Chapter 2, Section 4, Subsection A and the addition of a new Subsection K, of the
Englewood ?vf unicipal Code 2000, to read as follows:
-3-
HOTEL SEWER TAP AGREEMENT
THIS AGREEMENT, is made the 20th day of November, 2002, the CITY OF ENGLEWOOD whose
address is 1000 Englewood Parkway , Englewood, Colorado 80 110, (herein after City); and ROCKY
MOUNTAIN WINGATE, a Colorado corporation, whose address is 8000 E. Peakview, Greenwood
Village, Colorado , (hereinafter Wingate Inn).
WHEREAS, Wingate Inn requested a reduction in sewer tap fees because they believe their
Hotel 's water usage is less per unit than a single-family equivalent. The su bject Hotel is located at 8000 E.
Peakview, Greenwood Village, Colorado, also known as Wingate Inn ; and
WHEREAS, the standard tap fee is based on a normal flow of two hundred (200) gallons per day
and Wingate Inn es timates that their per unit flow is no more than o ne hundred ( 100) ga llons per day.
NOW THEREFORE the Parties agree as follows:
1. The City wi ll sell eigh ty-five (85) sewer taps for its Hotel units at one-half the standard sewer
charge, based on their estimate of no more than 100 gallons per day per unit real flow. This is a
minimum charge and in no event will the base tap fee be les s than one-half ( 112) the s tandard sewer
charge.
2. The initial tap payment to the City by Wingate Inn will be fifty-nine thousand five hundred dollars
($59,500.00) for Englewood tap fees; twel ve dollars and fifty cents ($12 .50) for the permit; and a
Big Dry Creek Interceptor Basin Charge of fo ur thousand two hundred fifty doll ars ($4,250.00), fo r
a tot al of s ixty-three thousand seve n hundred sixty-two dollars and fifty cents ($63,762.50).
3 . Wingate Inn will issue an irrevocable, stand-by letter of credit in the amount of s ix ty-three thousand
seven hundred fifty dollars ($63,750.00), which will be used for any additional tap fees . This letter
of cred it will be held by the City for tap fees as required pursuant to this Agreement.
4. The City will monitor winter (Novem ber I through April 30), bi-monthl y water usage at the Hotel
during a five-(5) year period . During that time, Wingate Inn will monitor water consumption on a
daily basis. Wingate Inn will furnish the City with a report on daily water consumption and the
number of rooms occupied on the corresponding days. The y will s ubmit the report to the City on a
monthly basi s.
5. If at any time during the five-(5) year period, the daily, per unit consumption goes ove r one-hundred
(100) gallons per day, Wingate Inn will pay the additional tap fee owed. If the fee is not paid within
sixty (60) days, the City will make periodic draws on Rocky Mountain Wingate of Colorado's letter
of credit to pay to the City additional sewer tap fees based on the amount of flow in excess of o ne
hundred (100) gallons per day as billed by the City of Englewood . If Wingate Inn 's daily, per unit
usage is less than one hundred (I 00) gallons per day, the City will not owe Wingate Inn any refund .
6. Additional sewer tap fees will be computed on the basis of two hundred (200) gallons per day being
equal to a tap fee of $1,500 .00. As an example, if the usage goes over one hundred (I 00) gallons per
day by five (5) gallons per day, then five (5) gallons per day is two and one-half percent (2 112%) of
the two hundred (200) gallons per day, two and one-half percent (2 1/2%) of one thousand five
hundred dollars ($1,500) is thirty-seven dollars and fifty cents ($37 .50) times one hundred and sixty-
one (161) hotel units is six thousand thirty-seven dollars and fifty cents ($6,037.50) in additional
sewer tap fees. The higher amount, in this example the 105 gallons per day per unit, will become the
new base line for tap fees. Once the baseline reaches 200 gallons per day, per residential unit, the
maximum tap fee will be owed. In no event shall the total tap fees exceed one maximum tap fee per
unit.
7. However, should additional units be added to the project at any time, the tap fees shall be increased
by the number of additional units. If the units are added after the five (5) year period described in
paragraph 5 above, or after a final base line for tap fees has been reached, the tap fees for the new
units will be the same as the final tap fees for the original units .
8. Any accidental discharge of metered water of an unusual and non-recurring nature where the City is
notified within 24 hours of discharge and Wingate Inn provides documentation of the nature and
extent of the discharge may be excluded from the calculation of the tap fees. The filling of a
swimming pool will not be considered an accidental discharge under this paragraph.
9. At the end of five (5) years or on the date on which Wingate Inn has paid the additional sewer tap
fees associated with an increase in the baseline for tap fees to 200 gallons per day per unit,
whichever event shall occur first, the letter of credit may be withdrawn and the City will no longer
monitor water usage except for normal, annual sewer billing purposes.
10. Any additional tap fees paid pursuant to this agreement are tap fees only and shall not be considered
sewer treatment charges. Any money owed the City under this Agreement is a fee for the sewer tap.
11. The City and/or it's auditor maintains the right to enter the property to examine the water use
records, the hotel occupancy records and to check water meter readings.
12. Wingate Inn gives the City the right to disconnect the hotel for nonpayment of any tap fees or sewer
treatment fees due the City.
13. This Agreement shall not be assigned by any party without the prior written consent of the other and
this agreement shall be binding on any successors or assignees.
14. Wingate Inn confirms it has eighty-five (85) units in this Hotel and agrees that it shall not add
additional hotel units to the City of Englewood 's sewer system without written approval of the City .
2
15. Any notice required or permitted by this Agreement shall be in writing, and shall be deemed to have
been sufficiently given for all purposes if sent by certified mail or registered mail, postage and fees
prepaid, addressed to the party to whom such notice is to be given at the address set forth below, or
at such other address as has been previously furnished in writing, to the other party or parties. Such
notice shall be deemed to have been given when deposited in the United States Mail. The notice
shall be sent to :
CITY OF ENGLEWOOD
ATTN: Utilities Department
1000 Englewood Parkway
Englewood, CO 80110
Steve Sparks, Managing Partner
clo Rocky Mountain Wingate, LLC
2305 Catron
Bozeman, MT 59718
16. This Agreement represents the entire agreement between the Parties and there are no oral or lateral
agreements or understandings. This Agreement may be amended only by an instrument, in writing,
signed by the Parties. If any provision is found to be void by a court of competent jurisdiction, no
other provision shall be affected by such holding. All of the remaining provisions shall remain in
full force and effect.
17. A waiver by any party to this Agreement or the breach of any term or provision of this Agreement
shall not operate or be construed as a waiver of any subsequent breach by either party.
18. The parties hereto warrant that the signatories below have full and lawful authority to execute this
Agreement on behalf of Wingate Inn and the City of Englewood, Colorado .
19 . The Parties agree that this agreement shall be recorded in the office of the Arapahoe County Clerk
and Recorder.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first written
above .
CITY OF ENGLEWOOD
Date:-----------
Beverly J. Bradshaw, Mayor
ATTEST :
Loucrishia A . Ellis, City Clerk
3
ROCKY MOUNTAIN WINGATE, LL -.,
\~~ By:~~c:;;Yle..:::::::..___.:....1.£.:lJ:_:.....,,,..,...~.,c.-~~~~~~ Date : __ /_~_/_w---'/'---1.._<-11'_\./ __ _
Steve Sparks, Managing
STATE OF MONTANA
) SS.
COUNTY OF GALLATIN )
Z. o4 I \,7 · ' (" -=--).d-L .
On this day of L--{ { e (Y\. b .e ,iJP'·, before me personally appeared S±l v L
5n(j,( l:;.S , known to me to be the · -, ,f[..-, t(the corporation that executed the within
anJ foregoing instrument, and acknowledged th ai nstrument to be the free and voluntary act and deed
of sa id corporation for the uses and purposes therein mentioned, a nd on oath stated that he was authorized
to execute said instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year
first above written .
My commission expires:
4
A TT.
lVIEMORANDUM
To: All Safety Services Personnel
From: Division Chief Moore and Battalion Chief Schoenbein
Date: September 27, 2001
Subject: Security of Englewood Water Treatment and Storage Facilities
The City of Englewood maintains numerous water treatment, storage, inlet, and
outlet facilities and locations. Each of these facilities and locations could be subject to
terrorist assault, especially biological or chemical infiltration.
Hydrants: Numerous "fire hydrants" exist throughout the City of Englewood,
and are readily visible and accessible from the street. Although most unauthorized
hydrant taps are for the purpose of stealing water, it is possible a terrorist could hook up a
"tanker" truck, overcome the hydrant exit pressure, and pump a deleterious substance into
the already-treated water supply. The impact of such actions would be isolated to that
portion of the water system downstream from the compromised hydrant. The upstream
distribution and storage system would not be contaminated, due to system pressure and
volume.
The City of Englewood has placed a bounty on all unauthorized hydrant taps.
Any person (employees included) who provides information enabiing the city to arrest an
unauthorized user will receive a $100 reward. Authorized hydrant users will possess a
City of Englewood hydrant-use permit for a specific location. A sign, with the permit
attached, will be placed on the permitted hydrant, in full view.
Take nothing for granted; challenge all suspicious hydrant users; and check for an
authorized permit.
Zuni Tank: An aboveground water storage tank is located on Bates Ave. just east
of Zuni St. This tank contains 500,000 gallons of treated water ready for public
consumption. The tank, nearly 100' tall, is surrounded by chain link fence with barbed
wire. A locked gate may be accessed from Bates Ave. There is a limited-access ladder
on the east side of the tank. The presence of a person on the ladder above the lirnited-
access point would activate a motion detector. An alarm is sent to personnel at the Allen
Treatment Plant, who would then call for a police response.
Any unauthorized person within the perimeter fence will be charged criminally
(trespass, criminal mischief, criminal tampering, etc.)
5
•'
Sherman Tank: Another aboveground water storage tank is located on Sherman
Way just west of Sherman St., next to Field Elementary School. The tank and all of its
land lies within Englewood. The primary access route, via Sherman St. and Sherman
Way, is within unincorporated Arapahoe County. Englewood officers will respond to
crimes at this site. The tank is similar in appearance and configuration to the Zuni tank,
although the Sherman tank is about 4 0' taller and contains but 200 ,000 gallons of treated
water ready for public consumption.
Property access is limited in a manner similar to the Zuni Tank, and motion
alarms are also activated in a similar way. Likewise, unauthorized persons on the
Sherman tank property will be prosecuted accordingly.
Union Ave. Pump Station: This pump station, inlets, outlets , and holding pond
are contiguous to the north side of U nion Ave. and the east bank of the South Platte
River. A locked gate limits vehicle access to the dri veway entrance ; however,
pedestrians do have access to the dri veway and initial river intake. The principal facility
building and fenced holding pond are posted off limits.
Although this facility intakes raw , untreated ri ver water, it may still be susceptible
to intrusion and damage . All unauthorized persons within any building or the perimeter
fence are subject to arrest. Indi vi duals within or near the intake channels , dri veway, or
gates should at least be challenged and identified.
The Twelve Million Gallon Storage Tanks at Sunset Ridge: Three massive
concrete-covered storage tanks are situated south of Belleview and east of Clarkson in
Greenwood Village. Two rectangular tanks each contain three million gallons of treated
water ready for public consumption; and one contains six million gallons.
Drive south from Belleview on Clarkson to Sunset Ridge Rd., then east to the
locked gate. The Highline Canal borders the south side of the tank property. Private
properties with homes border most of the remaining sides.
The interior of each tank is accessible through a steel "trap door." Although these
access points are padlocked, they are vulnerable.
The presence of a person on or near one of the tanks would activate a motion
detector. A common problem, however, is the activation of the alarm by roaming foxes
or skateboarding juveniles; and the fence surrounding the property is not entirely secure,
although work is in progress to make it more secure. Because of a high rate of false
alarms, Greenwood Village police are slow or reluctant to respond. Englewood officers
may be asked to respond, and should do so when called.
Unauthorized persons on this property will be prosecuted.
..
Charles Allen Water Filtration Plant: This water treatment plant is located at
1500 W. Layton Ave., and is bordered by Windermere on the west, Belleview Park on
the south and southeast, Layton on the north, and "Wash-Water Reservoir'' on the east.
The facility is surrounded by a barbed wire fence, and is accessible through a rolling gate
at the driveway entrance on Layton. Building access doors are locked at all times, except
for a south side "staff entrance."
Six or seven employees staff the facility during normal business hours; and at
least one employee is present at all other times. Motion detectors at remote facilities are
monitored locally at all times. Although this facility is reasonably secure, it could be a
prime target for sabotage, especially at night and on weekends. Any emergency call to
this location should be taken very seriously. Fire Division response may also be
necessary to help gain access to locked areas.
North Reservoir and Wash Water Reservoir: The reservoirs are situated at
Mariposa St., north and south of Layton Ave . The City Ditch flows south to north along
the east side of both reservoirs, and feeds into North Reservoir. A barbed wire fence
surrounds each. Gates to North Reservoir are located at the southeast comer and midway
on the south side. Gates to Wash-Water Reservoir are located within the Allen Filtration
Plant perimeter.
Again, unauthorized persons within reservoir property, or tampering with flow
gates and channels, will be arrested.
* * * * * * * * *
Englewood's water system is basically divided into two parts: raw water and
treated water. Each has a different level of vulnerability.
Raw (untreated) water is easily accessible in several locations; for example: the
Platte River intake and holding pond by the Union Ave Pump Station; North Reservoir
and Wash-Water Reservoir adjacent to the Allen Filtration Plant; the city ditch;
McClellan Reservoir (in Littleton); and the Platte River and Chatfield Dam Lake,
Englewood's primary water source.
The treated-water storage and distribution sites (previously listed) are less
susceptible to intrusion and contamination; and each has various levels of security built in
and maintained, adequate to prevent tampering by all but the most determined or
knowledgeable infiltrator.
Raw water sources are the most vulnerable and attractive for someone determined
to tamper with Englewood's water supply. However, the high level of treatment,
filtering, and chemicals, and the testing of water after treatment prior to storage, should
detect and eliminate most common types of infiltrates.
'.
Increasing the surveillance and patrol presence at all these locations should help
reduce the possibility of casual or nuisance destructive activity. If Englewood's water
supply does become the target of a dedicated individual or terrorist group determined to
disrupt operations or contaminate the distribution system, their actions may be discovered
prior to wide-scale deleterious effects on the health of Englewood's citizens.
Robert E. Moore III
Patrol Operations Division Chief
c : Bill McCormick
Stu Fonda
Chris Olson
ft/Jl
Don Scho~ein
Battalion Chief
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Attorney general's office challenges ruling cutting off farmers' wells .·
By The As.soclnid Press
GREELEY -The Colorado af...
tomey general's office is challeng-
ing a \fala" judge's rating to sJwt
clown welts to farmers llflless they
pump more water back into the
Soul• Platte River.
Tbe attDmey ge-.eral's omce
liled aa appeal FridAy mlh the Col-
oradv Supreme Court, but A re-
spaase Is ul expected uaUI at
least March.
That leaves maay farmers in
Um~ as tliey prepare for anon.er
gn>WllJi season..
T008e who depend on the CentrAI
Colorado Water Couservancy Dis-
•·
trict for waler vi.U be able lo keep
taking water from its wells for
now .
The district, wlaich •u about
1,000 wells from Brighton fa Fi>rt
Morgan. Hled its waler replace ·
ment plaa Friday wlfdl will allow
the wells to be used in 2003.
However Fort :Morgaa-based
Groulldwater Appropriators _ of the
South Platte, wluch hs wells Crom
Denver to Julesburg, bas oo plan
in place becAUie it does not own
addiUonaJ water.
Jucfc e Joaa!Mn Rays ruled last
week that the state iA°gineer's of-
fice doesn't •ave the authorlly lo
approve farmers' use ol about
··.·.
. '
3,oto lrrijation wells.
Under the ruling, farmers wm -·
have kl ro to water court lo get
tbeir well operations approved,· ·
whicli could t.al:e yeas. They ·
would m05t · lltcly bave to buy
more water t.ofreplace the walet·' ·
tlaey use, aometlWtg mo.\l farmers
<:ao't affCII'd. ·
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Water: State is.Jikely~to!app.eal( ~
rUlijg to·COlofcido Supreme court .. . ~
Coatinued rr0m 5.A Il'rlgat1on Co., and c.tttes such 118 Denver,
toldtboseruleswercwrong.It'sahellofa Bcmlder, EniJ.ewoo<1 and Highlands
M1Yto nm the state. Th1S UI a total break· HaD.ch, which. al.so rely on the South
downinpUbllcpollcy.n Platte, have !ought ror the peat year to
The state llkel:yv.1ll appeal the ruling to-stop the pumptn(. ·
the Colorado supreme Court and iS al-Th~want the tanners to demonstnite
.ready dnl1'ttnr emergmey lei!Sl&tion to in water court that they are putting
keep the wells pumping next sprillg, . eno\12h water back into the river to re-
Ament aai~. . place what their underground~ have
But a Bupreme court rulint could take depleted. .
months to· an1ve, and apponents said "Those tamiers have been eett1Di spe-
they wm ft£llt 1UIY attempts by iawmak-. clal treatment tL'om the state tor years,w
ers to~ out the farmer& Shimmin sa1d. !'Tim ruling J:neans we all
No one wants to d?1 up farms, said havetopll;iybythesamerules.'
·14lke Sb1J:nmin, an attomeynpresentin( Ani.en.t sa1d. be hoped to brinit all the
~~ md pow.r!Ul irrigators akmg the partiestO(etherincomingweekstobam-
SouthPiatte. . . . nirr out a compromlae that 't9iil liat1sn' ; ..
"But they've bad 30 yeani to fix thla the c1t1ee and~ irrigation companie.s,
. : probleIJi.. We begged. the state ;!or the aawellauDowthetarmerstokeeppump-
~ ye&!to come up with a coi:nPromise. ing. . ·
• B~~ they made it clear we would have to .. We an need to be s1ttlni around ~ a
take them to court, and now .. we have conference room. not a courtroom,r
won,.''. . ·.:: · Ament said "I!wedau't~awaytoprc-
~e lei&l battle. which flai'ed durttlg vent these kinds of water wars, the farm·
the droil&'ht th1a summer; centers on ers Will have to sell their water to the cit·
whether the state has all~cff~ to 1es beca.~ they won't be able to farm
pump too much watcrtrom uncfei-ground anymore, 8Dd tbat will tear Colorado's ar-
supplles, gradually depleting the South rtculture economy down.•
Platte'' own undel'i?'OUnd soun:e.s.
In1luent1al irrigation compamea. such mrlthJ@.RoekllMOuntainNc:wi.com
as BIJou Itrtgatlon CO. and Fort ~ or(303)892-5474
--"--------------·---__ .,.,... ___ _
/'
··•.
·Court tells
. '
.·farmers
·to shutoff
spigots
• tl}4-"f/o"l,
Inigators inJam .
. as ruling pits citie8
against growers
ByJ~Smitb
ROCKY MOUNTAIN Nl::WS
. MON than 1,500 farms alODi
the South Platte River ha-.e lost :·<::::'. :· '..
the legal authOritY to pump from wens that lJ:rlgate a broad swath ·· .·.-'·:\':'
of northeastern Colondo farm-
land from Brighton to Gr.eeley. .
' In a water court ~ is.siled
th.13 week. the state was found to
have no authority to appl'O\le the
operations of-ftome ~.oo.o 1nig'a·
tion wells, which .use~ much wa-
. terinasummer88thetit;yatDen-
. verl.1$eslnayear. ·
The .ea.se pitted the 1'&l'mers
Q&'Q1nSt Front .Range; cttles and
major trrlgation companies.· The
ruling could Initiate the tJrst wa-
. terwarot200S. ·
"If those tanners can't ~p
. next year, this will mean billlom
or <10nars in ruunage to the rarm
economi," said Agricultt.lre Com-·
JXll.iSle>ner Don Ament. 'Tm al-
ready getting eallA from ~
and seed companies who don't
knOW wbat to do. Thia ~ de·
stroy that tarm economy tt we
don't!!.nd a solution."
In h1S rullng, 9olorado Districi
court Judge Jonathan Hays said . . . .. . " •'
tllt state dOes not have the au-
tborityto approve the well ope{a-
tions. somethini State Engineer
Hal SimPSOnhaB done forycar&.
Slmp.son could not ~e .reached
tor comment. .
· Without the state's authorlza·
tiOn, the farmers wW have to iO to
water court t.o ¢;their well aper~
' atiom approved :ind likely wm
have to buy more water to J~
theiruse o~wells. ~~·s some-.
· , thing moist tanners c~ t a.trord,
Ament and othm sai~.:
· "'The growen up " hen: are
scared to death." slil.tcl Tom ·:;ecn.
. dlreCtor of the Central "."1orado
con.servancy District. wbich rep-
resents some of the timners aaec:t-
cd bythe ru11ng. "Th~c beenM·
lowing the rules leid out by the · · ·
state for years. No,.g tbeY'~ ~ , .. ·.'
'1 '•I ••· ,_,r. -'-': •Fllv "-·~iiA~-~
........
Po'verful lawmaker
will fight for right
to pump '~ter
ByJerd~
ROCl<rMOUNT~N HE 'IJS
one of Colorado's most powerful
lswmakers vowed l\olondl\l' to do ev-
erything ln his power to keep tbou-
unds of tniptlo11 wels pumping
and tile ranrfeoonom.v or the East-
ern Plain& alive thJ.s sprtng in the
.fttce of a major ll!.J'm wster crlsl.s.
'I'll 0,-ht Denver, I'll.llgbt otber cit-
ies, 111.11,gbt the dJtch companles,1'11'
change the state Constitution if I
have to, t.o protect th~ farmers
and keel:J those wells pumplng. •said
Sen. Dave owen, R-Greeley, chair-
man ~r the legl&lature's Jq1n.t Bud-
get Committee, "'hlch cont.rols all
state spending, as well as the Sen-
ateAJ>proprlaUons Committee.
. Owen's remarks comejust~sef
ter Colorado Dl&tr1ct Court .Judge
Jonathan HI.I.vs rulea agaln&t the
state, oaytng state water omclah
had no autlxlrlt)• lo IJV'ef&ee the oper-
aUon or more UWJ s,ooo ird;stion
;·.< .... !. ~·-._£.;~-.(),~~\:.~ .·:·l "°:_:l._7,_P.
·----·--··: -·----------, -.. --·--------·------·--· ---rvESDAY;:oBCEMBEK ~ 2002 i. i:" HI l If 'II " I : .......... : ... 'b' -. . . ! .. _. --·-1 . . : • . : •• '.•=> .. !>:.1 · I I -~ !_; j I l ll : _. .. .. -.... , ht . 'ks ~f • r " • • e1g · ·· ·at ,. · · .armers
"I'll fight Denver, I'll fight other cities, I'll fight
the ~tch companies, rn c~nge the state .
Constitution ifl have to, to protect those
farmers and keep those wells pwnping."
wells. The ru1lnc means that wlth·
out lawmakers' intervention, more
tbe.n 1,600 fanns llloni the South
Piatte River won't be able to l.n1ga\.e
thl.s spring.
The state ls expected to appelll
that ruling to the Colorado su-
preme Q>wt. The appeal could be
filed as earbr es tod~. aald Steve
Sims, assistant attorney gt?n.eral
At issue lB whether deep lrrlgatlon
wells In the South Platte Basln
oortbe38t of Den\ecr bave been
pumping too much water, drying up ·
the SOuih Platte and k\)urlng fann-
ens·and cities who rely oo. Ute rtverkr
sel!. .
The lssue has been simmering ror
more than 30 year.s, but the SOUUi
Platte ha& had su.ch ab1D1dant wat.er
that R!W cr1tk3 belleYed cllil.N ~
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' Sen.Daw<>wm
R-Greeley
being slgnlfkantly harmed by the
PumJ11ng.
That chanr;ed quickly t.hls swn-
mer. A& a hi.stone droulht lowered
water levels In the South PW.te, a
number ot cities. as well as po~
cUtch companles threatened to seek
anl.I%Junctlontostopt.h.epre..cUce .
Water wers lncludlni the power-
1\J.l Bllou lrrlg&Uon Oo., the Fort Mor·
gan Ditch co . and the FarJI)ers Res-
ervoir and rrngatknr Co., 88 well as
the communities of Boulder, West-
min.ster, lllgblands Ranch, Thorn-
ton and Denver, farmally opposed
the state ln an admlnlstratlve pro-
ceeding 1n water court. Last week
the cOlll't decided against Ule' state
and the pumping farmers, throwing
into doubt the fllnrlers' legal rlghtto
!.rd&Ble this sprinK .
Experts believe these Irrigation
""Cll8 use as much watertn one sum-·
mer as Denver use.s: in a year, more
than 300,000 acre-teet. An acre-foot
ls enough to suppl.v a !am.Uy of lhur-
wttb waCer ror one ,ear.
The ditch oompan1es and t.h.e clt-
le& 98,f the,y don't want the r.ann& to
go dry. But they wunt the we.I.er
court, not statewaterofftdals, tode-
termine how much water the wells
can pump and hO" much water
must be returned to the South
Platte.
The controversy h& tanner.s,
their bankers and stat.e aRJ1culture
otnclals deeply •Ranted. In the late
193(!B , after the Du.stBowl wiped out
bundredsof!anns, thestateencour-
aged drilllng ofth~e deep lnigaUon
wells because the wells made broad
swaths ortannland almost drought-
prool.
But bytb.e l 96Ds, bydrologlstsdls-
covered that the wells actu&u_v de-
pleted tbe dver by draining under-
ground supple& that · helped the
South Platte malntaln lUI 00\\lll.
Since tben, fumer.s have been re-
qulrecl by the state to put. water ·
back Into I.he rl.ver to omset l.h.elr
pum_plng. -.
_Buteltles and fllrnler& who rely on
the river have never believed these
~ .-
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tanners put enough water back Into
tberlveT. Andthoughmoatwat.erus-
ers have to gtJ through ·an arduous
water-court review to use \\'!lter,
these Dinners haw simptr worlced-
wltb stat.e oMclals, not the court, to
detennlne how much water I&
pumped amt bow mueh ls given
backtotbt'river.
The '88ue blmv up thLs l!WtlIIler as
farmers with senJor Wilt.er rifbts on
the river watched their l'ields burn
while farmers wlth inigatlon wells
continued pumplog".
.Fanners, water olllciah and I.aw-
. makera·are ;holding a. series or emer-
gency meetlngs ~ seeila leg13latlve
solution can be crafted. The Colo-
rado legislature convenes Jan. 8..
Owen saJd he hoped to come up
with a bill th.et will reo..ssurn the
ditch compen.ies and cl.ties that the
water Is bemg med equltnbly, nnd
that wlll allO\\• the lannera to plant
and l.rrlpte next-sprtng-.
"I'm not s e.rtng-yet what we're ru-
ing to do because rm still taJklni to
people," Owen said. LJlut In early
.TBll.U8l'J you will see -a b1ll that Js as
eqWtable as ):IC>&Slble to everyone in-
volved .~
smftli,l@FD::l:l}lll'~eu:r.com
or(JOJJB!/2-5474
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Attorney general
! stands up for farms
' that depend · on wells
By Jerd Smith
ROCKY MOUNTAIN NEWS
j ColoradoJs attorney general has
I appealed a water court rullng that
I renders ongoing pumping df more
· than 3,000 irrtgation wells in north-
eastern Colorado illegal.
Ken Salazar said he would ask
' the state supreme court to expedite
its review of the case.
The soonest it's likely to be heard
is May, according to Ken Lane, a
: ...
spokesman for the attorney gener-
al's office.
Tuesday's appeal comes one
week after Colorado District Court
Judge Jonathan Hays. who pre-
sides over Pivislon One water court
in Greeley, said the state had no au-
thority to administer thousands of
irrigation wells in the South Platte
River.
At issue Ls whether the wells have
pumped too mu.ch water over the .
years, gradually depleting the
South-Plat.te and reducing supplies
because of powerful ditch compa-
nies and some cities.
The ruling means more than
1,500 fanns along the South Platte
probably won't be able to irrigate
thousands of acres of crop land this
sp~g.
Several Front Range cities, in-
cluding Highlands Ranch. Denver, ·
Boulder, Thornton and Westintn-
ster, as well as the Fort Morgan Irri-·
gation Co. and the Bijou Irrigation
Co., challenged the wells' operation
thls year. spurred by the drought
and growing-Water shortages.
Lawmakers, including Joint Bud-
get Chairman Sen. Dave Owen,
R-Greeley, plan to propose emer-
gency legislation ·that will allow the
farmers to plant crops and irrigate
this spring while the case ls being re-
viewed by the Supreme Court.
"The viability of agriculture Ln the
South Platte Rlver Basin has been
placed in jeopardy by the water
court's ruling and it 18 essential
th~t the state ~f~~ contest
it, Salazar said. . ... -~ '1i -
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200 2 11 /11 MON 15 :46 FAX 3035262624 HARTIN AND WOOD WATER 444 Englewood Utilities ~002/002
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The Denver Post I Brian Brainerd
Five-year-old Justas Mikulskis and his father, Gint, ice fish Tuesday
at Chatfield Reservoir. Some nearby residents contend that Denver
Water's plan to tap t he lake for drinking water will expose them to
decades-old contamination, but officials insist the water is safe.
Plans to tap
Chatfield water
raise taint fears
Residents cite nearby Superfund sit~
By Joey Bunch
Denve r Post En vironm ent Write r
A plan to pull drinking water
from Chatfield Reservoir early
next year ignores history arid pub-
lic health, contend activists who
say the water was tainted by rock-
et fuel and industrial chemicals de-
cades ago .
"It's like building houses on
Rocky Flats," said Candace Logue ,
referring to the former nuclear
·weapons factory north of Denver.
Logue is convinced the water
she drank in the early 1980s killed
her newborn son , Michael , in 1984
and left her next child, Kimberly ,
with a wrecked immune system.
Despite a stack of government
studies that say the Denver Water
supply from the region is . safe,
Logue and a handful of other activ-
ists and former residents of the
community are unswayed and wor-
ried .
The reservoir in Jefferson Coun-
ty shares creeks and underground
water supplies with a Superfund
cleanup site -tbe neighboring
U:S. Air Force Titan Missile test-
ing ground.
Some residents like the Logues
say they may have already drank
pollutants from the site.
Until it closed in 1984, the
Kassler Water Treatment Plant be-
tween the reservoir and t he testing
site handled whatever came down-
.
stream -·from the rocket facilit y :
and eventually put it in the dri.Dk-
ing supply, critics say. Since
Kassler closed, the runoff from the
testing site has .either stayed in the
soil and groundwater or passed
through the reservoir. •
Denver Water will begin tapping
the reservoir, for the first time,,iJ!
February to boost the city's drin;k~
ing-water supply. ·
Further, the state and the u.s ;
·Army Corps · of Engineers ?te
spending $2 .5 million to study fil1~
possibility of doubling the amoqnt
of water in Chatfield to help
quench the region 's thirst during fu;
ture droughts. ~ ..,.
Ch.atfield Reservoir, built in t~
mid•l960s for flood prevention, to-
day is enjoyed by 1.5 million visi-
tors a year. The 1,450-acre lake at;
· tracts swimmers, boaters, anglers,
hikers, campers and wildlife watC!i.-
ers. :-.
A few miles away , the military
is still cleaning up the contamina:
tion t hat put the site on the list of
the nation's most polluted places
in 1989 . ·'''
The site was contaminated with
spent rocket fuels sprayed off ef!~
gine test sites, cleaning solve!}fs
and other industrial oils and wast~.
They left behind residues of Uy·
drazine , nitrosodimethylamine;
trichloroethylene, benzene and
., ""'.
Please see WATER on 4S
The Denver Post I Brian Brainerd
Canada geese have replaced boaters on frozen Chatfield Reservoir for the winter. Denver Water and state health department experts
say that even if some contaminants made it to the r?servoir, they are long gone by now.
Plans to tap Chatfield water opposed
WATER from Page 1 B
heavy metals.
But studies by the state health
department and the EPA and the
military, among others, say the
chemicals never made it off the
testing site and the 4, 700-acre in-
dustrial complex owned by de-
fense contractor Martin Marietta
Corp .
Studies also have given a clean
bill of health to the water in near-
by Chatfield and the South Platte
River.
Logue , however, remains con-
vinced the water is unsafe .
''How many children have to
die before they think about it?"
Logue said.
About 30 families among the
2,400 people who lived in the two
subdivisions in the early 1980s
said they believed cancers, birth
defects and other illnesses in chil-
dren were caused by their tap wa-
ter.
But a lawsuit filed by the
Logues and 10 other families in
the Friendly Hills and Harriman
Park neighborhoods was tossed
out in 1990 for lack of a strong
link between the testing site's pol-
lution and the illnesses.
Denver Water and state health
department experts say that even
if contamination had made it to
Chatfield Reservoir, it's long
gone now.
"There is no written evidence
and there is no logical likelihood
that anything is there," said Steve
Work, Denver Water's director of
operations . "Agencies with a lot
more expertise than we have
have concluded that on many,
many occasions."
The federal government sold
the 464-acre testing site to neigh-
boring defense contractor Lock-
heed Martin last year, but the Air
Force remains responsible for on-
going cleanup of the contaminat-
ed dirt and water there.
Karl Kunas, the environmental
engineer overseeing the Air
Force cleanup the past five
years, said the military continual-
ly monitors water on the site
with the state health department,
the U.S. Environmental Protec-
tion Agency and a local citizens
advisory board looking over its
shoulder.
Adrienne Anderson , a Colorado
University instructor and grass-
I ;;;J..-.;i.' -C ~ ___ _.........,. -
roots environmental organizer,
has no faith in the government's
studies or reassurances.
She went door to door in Friend-
ly Hills collecting data on illness-
es in the early 1980s as the west-
ern regional director of the Na-
tional Campaign against Toxic
Hazards.
State and federal studies paint-
ed the Air Force and the defense
contractor in the best possible
light by ignoring contradictory in-
dependent investigations, includ-
ing hers, Anderson said.
She accuses the government of
skewering the facts that would
prove a dire public health threat.
"They very well know what the
impacts were , but they rigged
these studies to cloud the history
of contamination in this water all
the way back to 1956 ," when the
rocket plant opened , she said.
Logue said the studies are a
carry-over of the Cold War secre-
cy .
"They kept it all secret back
then, so why shou ld we trust
them now?" she said.
Not all environmentalists are
convinced that drinking from
Chatfield poses a threat.
Myrna Poticha, who serves on
the South Platte River Commis-
sion and sat on the state Water
Quality Control Commission
from 1975 to 1985, is an ardent
member of the Sierra Club and a
staunch defender of healthy wa-
ter.
"The last (water inspection)
numbers I saw on Chatfield
shows that it's so clean it's unbe-
lievable," said Poticha, who was
named one of the America's 30
"clean water heroes" by the na-
tional Clean Water Network in
October.
Carmi McLean, Colorado direc-
tor of the Environmental De-
fense's Clean Water Action orga-
nization, said she wasn't alarmed
by Chatfield as a drinking-water
supply, but the lingering issue
about t:ie Air Force plant's im-
pact should be put to rest in the
public's minds.
"I don't want to cry Chicken
Little, but absolutely, given the
concerns with (the rocket plant)
through the years about contami-
nants going into the water sup-
ply, Denver Water should be as
prudent as possible ," she said.
...
2 ,)Q.2 12119 THU 11 :33 FAX 3035262624 MARTI N AND WOOD WATER ......... Englewood Utilities ~002 /004
DRAFT'
ATT 7
159 .1 EiC
Ioc Tom Wood/Martin and Wood Water Com1ullant3. Inc.
12118
An Executive Summary of the Pending Englewood/Centennial
"Water Supply and Facilities Agreement"
Description of the Present 1980 Water Supply Agreement
The 1980 agreement contained two primary features, both of which led to
conflict between Englewood and Centennial, and both of which are addressed and
resolved in the pending agreement.
First, the 1980 agreement provided that Englewood would provide Centennial
with 1,500 a.ere-feet each· yeM of high-priced scheduled water, to be delivered to
,.~enten~ial on a set or scheduled monthly basis. Then , to the extent that Englewood
·had water available for Centennial in excess of the various amounts of monthly
scheduled water. Englewood would deliver additional water Ccalle4 unscheduled water)
. to Cc~tC:nnial at a lower price. Conflicts developed between the parties as to · whether
~e I ,500 acre-feet of scheduled water was an absolutely firm, guaranteed supply for
Centennial.
Second , the 1980 agreement provided that Englewood would utilize 900 acre-
feet o( Englewood's storage capacity in McLellan Reservoir so as w · provide herself
wit}) the ability to firm up the deli very to Centennial of the 1,.500 acre-feet of scheduled
water. The conflict which arose here was Centennial's contention that Englewood had
effectively lease:d these 900 acre-feet of storage capacity for Centennial ' s exclusive use,
i.e., that ·these 900 acre-feet of storage space were for Centennial to store its own
water.
A Cqmparison of the Primary features of the 1980 Amement and the Pending
Aueement
The pending agreement will do away with the 1,500 acre-feet of scheduled
wa~· apd the 3,~00 acre-feet of unscheduled water, and it does nQt require Englewood
to ·deliver any set amount of water to Centennial in any year , Thus, the pending
a~eernent does away with any notion that En~lewood is to provide Centennial with a
.firm'·supp~y of water. Rather, the pending agreement requires Englewood at all times
to determin e if she has a water supply smplus to her own needs, and if she has such
surplus , to make it available under certain terms to Centennial .
~.The pending agreement sets up a three-tiered price for the water to be supplied
to Centennial -high priced water , medium priced water, and low priced water. Within
cc~. mortthly limits on how much water Centennial is required to take and pay for,
Centerinial must take all high and medium priced water offered . by Englewood .
Centennial is under no obligation to take or pay for low priced water. Beginning in the
2002 12 /19 THU 11:34 FAX 3035262624 HARTIN AND WOOD WATER 444 Englewood Utilities
159 .1 EiC
Joe Tom Wood/M11rtin and Wood Wo.tcr Cons11ltants, Ini.:.
12/18
year 2003, high, me.dium and low priced water will be sold to Centennial at $337,
$175, and $99 per acre-foot, respectively, escalated annually on the basis of a
Consumer Price Index ("CPI").
As to the 900 acre-feet of storage previously in conflict, Englewood will
annually lease it to Centennial, for Centennial's exclusive use, for $233,.500 in 2003,
escalated annually by the CPI.
Further, the pending agreement includes Englewood 1 s express annual lease to
Centennial of her surplus fl.ow capacity in the City Ditch and in the Nevada Ditch.
Englewood will receive from Centennial $35,000 in 2003, escalated annually by the
CPI.· In addition, Englewood's surplus capacity which is le.ase.d to Centennial is set
forth clearly in the pending agreement, which will avoid another conflict stemming
from the 1980 agreement. , . , . . . 1 ~
J,J1 (,t \,,n.v/,j..tp ~
The Two Principal and Interrated Features of the Pending Agreement
The pending agreement is a performance based agreement whereby Englewood
is r~warded by her good performance in providing her surplus water supply to
Centennial . As long as Englewood continues to supply a "good" amount of water to
Centennial on an annual basis, Centennial will pay Englewood more money for the high
and medium priced water. If Englewood's delivery to Centennial falls in a given year,
as compared to the last ten years, Englewood will be paid less for high priced water for
· the next ten years. This explanation is admittedly incomplete, althouah generally
accurate, as il fails Lo include the following explanation of the two primary and
-~tcx~ features of the pending agreement. These two features are termed the
res old and the Threshold Buffer.
The Threshold represents the maximum annual amount of high priced water to
be sold to Centennial. It is calcu lated early in January of each year for the forthcoming
year, based on previous years' delivery of water to Centennial. The Threshold is ,
however, initially set at 1,500 acre-feet for the year 2003.
The Threshold may increase only if the minimum annual delivery for the
preceding ten years exceeds the previous year's Threshold, and, if so, the new
Threshold for the current year will become the minimum annual delivery from the
previous ten years. In other words, Englewood will be rewarded for her performance
by increasing the current year's Threshold (i.e., the limit for the high priced water), if
she builds up a good record of delivery for the past ten years.
The Threshold can also be reduced if Englewood fails over a period of Lime to
provide water to Centennial, but the Threshold Buffer is provided in order to minimize
or slow down a reduction of the Threshold.
~003 /004
~002 12 /19 THU 11 :34 FAX 3035262624 MARTIN AND WOOD WATER ~~~ Englewood Utilities
1S9.1 EiC
Joe Tom Wootl/Martin and Woo<l Wartt COftllllt4nta, Inc.
12/18
The Threshold Ruffer stems from the 1980 agreement. It is, in fact, an
imai:inazy 900 acre-feet of storage capacity in Mclellan Reservoir which is used t.o
minimize or at least slow down any reduction t.o the Threshold. It works as follows.
~004 /004
At the initiation of the agreement, presumably January, 2003, the .amount of
water in the imaginary 900 acre-feet of storage in McLellan Reservoir, i.e., the amount .
· of water in the Threshold Buffer, is set at zero. To me extent that Englewood delivers -
to Centennial an amount of water in excess of the Threshold in any year, that excess is
deemed to be stored in the Threshold Buffer. For example, wilh the year 2003
threshold of 1,500 acre-feet, if Englewood were to delivery Centennial 2,000 acre-feet
in 2()93, at the end of 2003, the amount of water in the Threshold Buffer would be 500
acre-feet.
The amount of water in the Threshold Buffer is capped at 900 acre-feet so that it
acts just like a reservoir with only 900 acre-feet of space.
If Englewood in 2004 then delivered to Centennial 600 acre-feet more than the
.2004 Threshold, at the end of 2004, the Threshold Buffer would have 900 acre-feet in it
(500 from 2003 plus 600 from 2004 = l, 100, but the cap is 900).
:.: Now we know how the Threshold Buffer can be increased, but how does it
ininimize or slow down a reduction to the Threshold? Let's continue the progression
above from 2003 and 2004 to the year 2005.
7
./" ---
If the Threshold for 2005 were~ acre-feet, but Englewood only delivered
1,100 acre-teet in 2005, 600 acre-feet in the Threshold Buffer would be used-to prevent
a re.duction in the Threshold for the next year, i.e. for 2006. However, after the 600
acre-feet from the Threshold Buffer were taken in 2005, the Threshold Buffer would be
reduced to 300 acre-feet for the~· 2006, but perhaps more importantly, the
. Threshold for 2006 would remain at ,600-ere-feet . .. ,_·i-
If the year 2006 were a "good" year, ~ith delivery exceeding the year 2006 .
threshold, the amount in the Threshold Buffer would increase toward or even to the 900
acre-foot cap. If the year 2006 were a ''bad" year, there would still be 300 acre-feet in ·
the Threshold Buffer to prevent or at least minimize a reduction in the Threshold in "
2007. However, whenever there is an insufficient amount in the Threshold Buffer to ·
cover the deficit between last year's delivery and last year's threshold, the Threshold ·
for the next year will be reduced. It must be noted, and iL must be understood, that if a
redu9pon in the Threshold does occur, this re.duced threshold will remain for the next ·
~n years. This providci Englewood with a great incentive to maximize the supply
which she provides to Centennial. ·
""' ·r These primary provisions of the pending agreement reward Englewood for a
continuation of her good performance while providing fairness to Centennial for
Englewood's lack of g~ performance.
WATER SUPPLY AND FACILITIES AGREEMENT
TABLE OF CONTENTS
1. Recitals
2 . Prior Agreements Revoked
3. Sale and Purchase of Water
3.1 Sale and Purchase
3 .2 Definition of Surplus Water
3.3 No Englewood Obligation to Change Water Rights or Construct Facilities
4 . Availability of Surplus Water; Compliance With Charter; Right to Settle Litigation
4 .1 Availability of Surplus Water
4 .2 Englewood Charter
4.3 Englewood 's Right to Settle Litigation
5 Englewood to Make Good Faith Efforts to Supply Surplus Water
6. Non-liability of Englewood for Monetary Damages; No Quality Wananty
7 . Areas to be Served
7 .1 Centennial Service Area
7.2 No Violation of Englewood Decrees
7 .3 No Liability to Third Parties Within Centennial Service Area
7.4 No Liability Outside Centennial Service Area
8. Pricing of Water
8 .1 Introduction to Pricing of Water
8 .2 Definition of Terms
8.2 .1 Offered Water
8 .2 .2 Delivered Water
8.2.3 Obligated Water
8.2.4 Untaken Water
8.2.5 Contract Water
8.2.6 Annual Contract Water
8 .2 .7 Threshold
8.2.8 Ten-Year Average
8 .3 Allocation of Surplus Water to Categories
8.4 Calculation of Threshold During Threshold Initiation Period
8.4.1 Calculation of Threshold
P:\dianas\AGMTS\2003WaterFacilitiesSupplyAgreement.doc
8.4.2 Refund of Payments During the Threshold Initiation Period
8.5 Calculation of Threshold After Threshold Initiation Period
8.5. J Definition of Additional Terms
8.5.2 Calculation of the Threshold
8.5.3 No Change in Threshold
8.5.4 Reduction in Threshold
8.5.5 Increase in Threshold
8.6 Single-Use Water and Reusable Water
8.7 Purchase Price for Water
8.7. J High-Priced Water
8.7.2 Medium-Priced Water
8.7.3 Low-Priced Water
8.7.4 Reuse Rights
8.8 Example Calculation
9. Centennial Payment Obligations
9.1 Payment for Obligated Water
9.1.J Monthly Limits on Amounts of Obligated Water
9.1.2 Delivery Rate Limits
9.2 Payment for Non-Obligated Water
10. Place and Measurement of Deliveries; Pumping Costs; Notification
10.1 Place of Delivery and Measurement
10.2 Pumping Costs
10.2. J City Ditch Pump Station
10.2.2 South Platte Reservoir Pump Station
10.3 Notification by Englewood of Amounts Available for Delivery, Response by
Centennial
10.3 .1 Operational Notice
10 .3.2 Planning Notice
11 . Measurement Devices, Recordkeeping , Billing and Payment
11. l Centennial Measurement Devices and Recordkeeping
11.2 Englewood Measurement Devices and Recordkeeping
11.3 Annual Accounting and Calculations
11.4 Reconciliation , Billing and Payment
12. Amendments to 1977 Ranch Creek Lease
13 . Physical Facilities Lease
P :ldianas\AGMTS\2003WaterFacilitiesSupplyAgreement.doc
ii
13. l Grant of Lease
13.2 Englewood Physical Facilities in Which Capacity Is Leased to Centennial: Use of
Same
13.3 McLellan Reservoir
13 .3. l Determination of Capacity of McLellan Reservoir
13 .3.2 No Reduction in Payment Due to Siltation
13 .3 .3 Removal of Silt , or other Restoration of Capacity , Performed by Englewood
13.3.4 Removal of Silt by Centennial
13.3.5 Reduction in Storage Capacity by Causes Other Than Siltation
13.3.6 Drainage for Operations or Repairs
13.3.7 Losses from Seepage, Evaporation, Failure of Facilities and the Like
13.3.8 Storage By Either Party in Capacity of Other Party
13.3.9 Addition of Substances to McLellan Reservoir
13.3.9.1
13.3.9.2
13.3.9.3
Coordination
Permits
Recommended Practices
13.3.9.4 Fines , Damages , Fees
13.3 .10 No Effluent Directly Into City Ditch or McLellan Reservoir
13.3.11 Records , Accounting
13.3.12 Lease Payment for Use of McLellan Reservoir Capacity
13.4 City Ditch Facilities
13.4.1 Determination of Capacity
13.4.2 Existing City Ditch Agreements with Third Parties
13.4.3 Priority to Use of Capacity in City Ditch Facilities
13.4.3 .l City Ditch Water Rights and Englewood Reversionary Capacity
13.4.3.2 Englewood's Boreas Pass No. 2 Ditch Water Right
13.4.3.3 1948 McLellan Reservoir Storage Right
13.4.3.4
13.4.3 .5
Paid Deliveries Water
Other Englewood Water Rights and Contract Water
13.4.3 .6 Centennial Water Rights and Contract Water
13.4.4 Englewood Not to Make Additional Transfers of Capacity In City Ditch
Facilities
13.5 Nevada Ditch
13 .5. l Nevada Ditch By Laws and Englewood Capacity
13.5 .2 Englewood Not to Make Additional Transfers of Capacity In Nevada Ditch
P :\dianas\AGMTS\2003WaterFacilitiesSupplyAgreement.doc
iii
13.6 Englewood's Nevada Ditch Capacity Delivered at City Ditch
13 .7 Lease Payment for Use of Capacity in City Ditch Facilities and in Nevada Ditch
13.8 Payment of Annual Operation and Maintenance Costs as Additional Lease
Payment
13.8. l City Ditch Operation and Maintenance Costs
13.8.2 City Ditch Pump Station and Pipeline to McLellan Reservoir and Discharge
Facilities from McLellan Reservoir to the South Platte River Operation and
Maintenance Costs
13.8.3 City Ditch Pump Station Electrical Pumping Costs
13.8.4 Nevada Ditch
13.8.5 Billing and Payment
13.9 Control of Operations
13.10 Timeliness of Repairs
14 . Grant of Easements to Centennial
14. l Specific Instrument
14.2 Locations
14.3 Te1m and Type
14.4 Purpose and Scope
14.5 Route Selection
14.6 Reasonable Standards
14.7 Limitation on Obligation to Grant
14.8 Limitation on Locations and Standards Selections
14 .9 Englewood Relocation and Reconstruction
14.10 Exclusions
15. Englewood's Option to Pai1icipate in the Construction and Use of New Centennial
Facilities
15 .l Notifications
15.2 Design and Englewood Participation
15.3 Englewood Payments
16. Capital Improvements to City Ditch Facilities
16.l Improvements to City Ditch and/or Englewood City Ditch Pump Station
16.2 Separate New Facilities on City Ditch
17. Capital Improvements to Nevada Ditch Facilities
18. Adjustment of Payments
18 . J CPI Basis for Adjustments
P :\d ianas\AGM TS \2003Wa terFacilitiesSupplyAgreement.doc
iv
18 .2 Appraisal Basis for Adjustments
18 .3 Instructions to Appraiser(s)
18.3. l Storage Capacity in McLellan Reservoir
18 .3 .2 High -Priced Water
18 .3.3 Medium-Priced Water
18 .3 .4 Low -Priced Water
18 .3.5 Reuse Rights
18 .3.6 Paid Deliveries Water
18 .3.7 Lease of Facilities
J 9. Centennial Right of First Refusal to Purchase Englewood Water Rights or Raw Water
Facilities
19 .1 Englewood Raw Water Facilities
19 .2 Procedures
20 . Mutual Cooperation
21 . Reversion of Leased Water to Englewood
22 . Default and Remedies
23. Notices
24. Assignment by Either Pa1ty
25. Binding Effect
26. No Third Party Beneficiaries
27. Entire Agreement
28. Modifications in Writing
29. Severability
30. Applicable Law
31. Headings and Captions for Convenience
32 . Term and Renewals of Agreement
32.1 Term of Agreement
32.2 Initial Term
32.3 Renewal Options
32.4 Procedures for Renewal
33. Condemnation
34. Counterpaits
P:\dianas\AGMTS\2003WaterFacilitiesSupplyAgreement.doc
v
LIST OF EXHIBITS
Exhibit A
Payments Due from Centennial to Englewood
Exhibit B
Outside Ci ty of Englewood Water Service Areas
Exhibit C
Centennial Service Area
Exhibit D
Example Calculation
Exhibit E
Water Delivery Measurement Points
Exhibit F
General Features
Exhibit G
1995 Englewood/Cyprus/Denver Agreement Paragraph 3.3.5
Exhibit H
Englewood Physical Facilities in which Capacity is Leased to Centenni al
Exhibit I
Agreement between Englewood and Denver dated October 3, 1995
Exhibit J
Agreement between Denver and Littleton Cemetery Association dated May 23, 1933
P:\dianas\AGMTS\2003WaterFacilitiesSupplyAgreement.doc
vi
WATER SUPPLY AND FACILITIES AGREEMENT
This Water Supply and Facilities Agreement ("Agreement") is made effective this 151 day
of January, 2003 , between the City of Englewood, a municipal corporation under the laws of the
State of Colorado ("Englewood "), and Centennial Water and Sanitation District, a quasi-
municipal corporation under the laws of the State of Colorado ("Centennial").
1. Recitals.
1.1 Englewood and Mission Viejo Company , a California corporation
("Mission") entered into an agreement dated November 3 , 1980, entitled Water Supply
Agreement (Englewood-Highlands Ranch) ("Water Supply Agreement"). Mission 's rights and
obligations under the Water Supply Agreement were subsequently transferred to Centennial. The
Water Supply Agreement, in general, provides for the sale of water by Englewood to Centennial,
and various ancillary and related matters.
1.2 Englewood and Centennial are also parties to a Memorandum of
Understanding dated May 24 , 1990, a second Memorandum of Understanding dated June 7, 1990
and an Englewood-Centennial Temporary Agreement dated January 5, 1998 (collectively, with
the Water Supply Agreement, the "Prior Agreements").
1.3 Englewood and Centennial desire to terminate the Prior Agreements, and
to enter into this Agreement for the sale of water by Englewood to Centennial , the leasing of a
portion of the capacity of certain Englewood water storage and delivery facilities to Centennial,
and various ancillary and related matters.
1.4 Englewood and Centennial are also parties to a Water Lease and
Management Agreement dated August 3, 1977 ("1977 Ranch Creek Lease") which was
originally entered into between Englewood and the City of Thornton. Thornton subsequently
assigned its interests therein to Centennial. Englewood and Centennial desire to amend
paragraphs 21 and 22 of the 1977 Ranch Creek Lease.
NOW, THEREFORE, in consideration of the premises and the mutual agreements and
covenants hereinafter contained , the parties agree as follows:
2. Prior Agreements Revoked. As of the effective date, the Prior Agreements are
revoked, and are of no further force or effect except for any payments from Centennial to
Englewood which are presently due , which are listed on Exhibit A hereto, and except that there
are presently _acre feet of water stored in the 15.15 percent of the storage capacity of
McLellan Reservoir hereafter referred to, which water belongs to Centennial, and there are
presently acre-feet of water stored in such 15.15 percent, which water belongs to
Englewood. Englewood will withdraw its water therefrom as promptly as practical, and if
Centennial has water which it can store in such 15.15 percent prior to the withdrawal of the
P :\dianas\AGMTS\2 003WaterFacilitiesSupplyAgreement.doc
1
Englewood water, then to the extent of such Centennial water, the Englewood water shall be
booked over to Centennial.
3. Sale and Purchase of Water.
3.1 Sale and Purchase. Englewood agrees to sell all of its Surplus Water to
Centennial, and Centennial agrees to purchase some or all of that water from Englewood , under
the terms and conditions set fo11h in this Agreement. The term "Surplus Water" is defined in
paragraph 3.2.
3.2 Definition of Surplus Water. Surplus Water for purposes of this
Agreement is that water available to Englewood under its decrees and contracts which, from time
to time , exceeds the amount necessary for the needs of (1) water users within the municipal
boundaries of Englewood, including those resulting from lands annexed into the municipal
boundaries of Englewood after the date of this Agreement, (2) those persons, areas or entities
other than Centennial which are served by Englewood on the date hereof, which are desc1ibed on
Exhibit B hereto, and (3) those areas in the vicinity of Englewood's municipal boundaries to
which Englewood elects to provide treated water; provided , however, that Englewood shall not
sell treated water outside the Englewood municipal boundaries to a "wholesaler", i.e.,
Englewood shall not sell treated water outside its municipal boundaries to an entity which does
not itself use the water but instead resells the water to the actual users. Periodically throughout
each year ("year" in this Agreement means calendar year), Englewood shall determine how
much, if any, Surplus Water it has available.
3.3 No Englewood Obli1rntion to Chan£e Water Rights or Construct Facilities.
Nothing herein shall obligate Englewood to bring any proceeding to change any water right , or to
build any delivery facility, or to construct any well. Centennial shall not include any Englewood
water right in an application filed in water comt by Centennial without the prior written consent
of Englewood, which may be withheld without cause.
4 . Availability of Surplus Water; Compliance With Charter; Right to Settle
Liti£ation .
4.1 Availability of Surplus Water. Englewood has Surplus Water as of the
date hereof, but may not have Surplus Water in the future if Englewood's population grows as
anticipated, or if there is severe and protracted drought, or if other adverse circumstances
develop. Centennial is given no assurance that Englewood will continue to have Surplus Water.
Englewood shall have the 1ight , in its reasonable discretion, to interrupt , reduce or eliminate
delivery of water to Centennial under this Agreement whenever and to the extent Englewood
does not have Surplus Water.
4.2 Englewood Charter. This Agreement is subject to , and is made in
conformance with, the provisions of the Englewood City Charter. The benefits and obligations
P :\dianas\AGMTS\2003WaterFacilitiesSupplyAgreement.doc
2
under this Agreement shall not be modified by any amendment hereafter made to the Englewood
City Charter except as may otherwise be agreed to by Englewood and Centennial.
4.3 Englewood 's Right to Settle Litigation. Englewood shall have the right, in
settlement of litigation , to commit by conveyance or otherwise minor amounts of the water
available from any of its sources of water, and such commitment or conveyance shall not
constitute a breach by Englewood of this Agreement. Neither shall a judicial determination
which reduces the amount of water supplied to Centennial under this Agreement constitute a
breach by Englewood of this Agreement. Englewood and Centennial each receive a fraction of
the water derived from the 1948 McLellan Reservoir water storage right and from the "Basic
Deliveries" and "Paid Deliveries" under the Settlement Agreement among Englewood , the City
and County of Denver, acting by and through its Board of Water Commjssioners, and Cyprus
Climax Metals Co. dated August 11 , 1995. If a commitment of water by Englewood from any of
those three sources in settlement of litigation reduces the available water from the particular
source, then the reduction shall be shared between Englewood and Centennial in the same
propo11ions as the available water from that source is shared; i.e. the commitment shall reduce
the total water available from the particular source, and the remaining water shall be shared
according to the fraction otherwise established for allocation of water from that source.
5. Englewood to Make Good Faith Efforts to Supply Surplus Water. Englewood
agrees to make good faith efforts to supply to Centennial , under the terms and conditions of this
Agreement, that water which is Surplus Water as defined hereunder.
6. Non-liability of Englewood for Monetary Damages; No Quality Warranty. The
parties recognize and agree that Englewood's ability to provide water to Centennial hereunder,
and the quality of the water provided, are dependent upon numerous forces beyond Englewood 's
control, such as, but not limited to , drought; flooding; fire; windstorm or other storm events; war;
riot; deterioration, physical failure or inadequacy of storage or delivery facilities; adverse results
of litigation ; changes in applicable constitutional provisions , statutes or regulations; available
flows provided by the ditch outlet manifold from Chatfield Reservoir and associated piping;
pollution; earthquake; and the like. Under no circumstances shall Englewood be liable to
Centennial for monetary damages for 1) failure to deliver water to Centennial, 2) the quality of
the water delivered to Centennial, or 3) failure, inadequacy or unavailability of any storage or
delivery facilities, whether or not leased to Centennial by Englewood. Englewood makes no
warranty, representation or other assurance of the quality of the water to be delivered to
Centennial. The water delivered will be raw untreated water, and Centennial shall be responsible
for such testing of quality and such treatment as it deems appropriate prior to delivering such
water to its customers.
7. Areas to be Served.
7 .1 Centennial Service Area. Centennial ' s service area for purposes of this
Agreement ("Centennial Service Area ") is shown on Exhibit C hereto. Absent Englewood 's
prior written consent , which ma y be withheld in Englewood's sole discretion , Centennial shall
P:\dianas\AGMTS\2003WaterFacilitiesSupplyAgreement.doc
3
not deliver water supplied to Centennial by Englewood under this Agreement ("Englewood
Water") outside the Centennial Service Area; provided , however, Englewood Water shall be
deemed to be delivered entirely within the Centennial Service Area at any time when the daily
demand for water within the Centennial Service Area is greater than the daily concurrent supply
of Englewood Water.
7 .2 No Violation of Enelewood Decrees. Englewood shall deliver to
Centennial hereunder only water that may lawfully be used within the Centennial Service Area.
If water has been delivered to Centennial in compliance herewith, then Centennial shall be solely
responsible for any violation or claimed violation of the decrees associated with such water
which arise out of use or asse11ed use of such water by Centennial, including payment of
Englewood 's reasonable attorneys fees, costs and other expenses related to the violation or
claimed violation.
7 .3 No Liability to Third Parties Within Centennial Service Area. Centennial
will not enter into any contract, lease, sale or other arrangement or obtain any decree which
entitles or allows any person or entity other than Centennial to make any claim or demand
against Englewood for delivery or use of Englewood Water within the Centennial Service Area ,
or for failure of delivery of Englewood Water for use within the Centennial Service Area.
Centennial agrees to hold Englewood harmless from any loss, liability or claim arising from a
claim or demand by any person or entity other than Centennial relating to or arising out of the
delivery or use, or failure of delivery, of Englewood Water for use within the Centennial Service
Area, including payment of Englewood 's reasonable attorneys fees, costs and expenses incurred
in defending the claim or demand made by any person or entity other than Centennial.
7.4 No Liability Outside Centennial Service Area. Centennial will not enter
into any contract , lease , sale, or other arrangement or obtain any decree which entitles or allows
any person or entity including Centennial, to make any claim or demand against Englewood for
delivery or use of Englewood Water outside the Centennial Service Area, or for failure of
delivery of Englewood Water for use outside the Centennial Service Area. Centennial agrees to
hold Englewood harmless from any loss, liability or claim arising from a claim or demand by
any person or entity other than Centennial relating to or arising out of the delivery or use , or
failure of delivery , of Englewood Water for use outside the Centennial Service Area, including
payment of Englewood's reasonable attorneys fees, costs and expenses incurred in defending the
claim or demand made by any person or entity other than Centennial.
8. Pricing of Water.
8.1 Introduction to Pricine of Water. Surplus Water available in each year
will be allocated and delivered as High-Priced Water, Medium-Priced Water or Low-Priced
Water. In January of each year, the maximum amounts of Surplus Water that may be allocated
and delivered in that year as High-Priced Water and as Medium-Priced Water will be determined
in accordance with paragraph 8.3. Surplus Water available in that year in excess of the
maximum amounts of High-Priced Water and Medium-Priced Water for that year will be
allocated and delivered in that year as Low-Priced Water.
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8.2 Definition of Terms. Unless the context clearly requires otherwise, the
following terms will have the meanings specified below. The definitions in paragraphs 8.2.l
through 8.2.5 are for variable quantities that accumulate throughout each year, starting over at
zero in the following year. The definitions in paragraphs 8.2.6 through 8.2.8 are for single
annual values calculated once each year.
8.2.1 Offered Water: Surplus Water Englewood offers to sell to
Centennial.
8.2.2 Delivered Water: Offered Water accepted for delivery by
Centennial and subsequently delivered by Englewood to Centennial up to
the amount accepted.
8.2.3 Obligated Water: Offered Water for which Centennial is obligated
to pay .
8.2.4 Untaken Water: Obligated Water Centennial declines to take .
8.2.5 Contract Water: The sum of Delivered Water plus Untaken Water.
Sketches #1 and #2 illustrate various relationships between these types of water.
Sketch #1 -Delivered Water less than Obligated Water
t-------------------------Offered Water
t----------------------i.,' Delivered Water
t--------------------,------i• Obligated Water
e---1.-• Untaken Water
t----------------------• Contract Water= Obligated Water
Sketch #2 -Delivered Water greater than Obligated Water
t--------------------------~ Offered Water
r-----------------------i~• Delivered Water
t---------------.1~•0bligated Water (Untaken Water= 0)
t----------------------t~• Contract Water= Delivered Water
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8.2.6 Annual Contract Water:
many year.
The total amount of Contract Water
8.2 .7 Threshold: The maximum amount of High-Priced Water in any
year.
8.2.8 Ten-Year Average: The average of Annual Contract Water
amounts for the ten previous years. The Ten-Year Average for the years
2003 through 2012 shall be based on the assumption that the amount of
Annual Contract Water during 2002 and the previous nine years was 1500
acre-feet per year.
8.3 Allocation of Surplus Water to Categories . Two performance criteria , the
Threshold and the Ten-Year Average, shall be used to allocate Surplus Water each year as High-
Priced Water, Medium-Priced Water or Low-Priced Water. All Contract Water in any year that
is less than or equal in amount to the Threshold for that year is High-Priced Water. All Contract
Water in any year that is greater in amount than the Threshold for that year and less than or equal
in amount to the Ten-Year Average for that year is Medium-Priced Water. All Contract Water in
any year that is greater in amount than the Threshold for that year and greater in amount than the
Ten-Year Average for that year, is Low-Priced Water. The Threshold and the Ten-Year Average
shall be calculated in accordance with paragraphs 8.4 and 8.5.
Sketch #3 illustrates the concept of three price categories based on two
performance criteria, assuming the amount of Contract Water exceeds the Ten-Year Average, the
Ten-Year Average exceeds the Threshold , and the Threshold is greater than zero.
Sketch #3 -Price Categories and Performance Criteria
A B Contract Water
~ ....
Ten-Year Average
~ Contract Water here is a variable ,
r accumulating amount throughout the year
Threshold (shown from left to right above). Contract
.... Water at time A is High-Priced Water; at .... time B , Medium-Priced Water, etc.
High-Priced Water Medium-Priced Water Low-Priced Water
Centennial may take and pay for Low-Priced
Centennial must pay for High-Priced Water and
Water and /or water in excess of paragraph 9
limits , but is not required to do so. Once
Medium-Priced Water, up to the limits in delivered, it becomes Contract Water and
paragraph 9. contributes to future annual calculations of
the Threshold and Ten-Year Average .
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8.4 Calculation of Threshold During Threshold Initiation Period. For the
years 2003 through 2015, unless sooner terminated hereunder, ("Threshold Initiation Period"),
the Threshold shall be determined as follows:
8.4 .l Calculation of Threshold . For 2003 , the Threshold will be 1600 acre-feet.
If Annual Contract Water is less than 1600 acre-feet in 2003 , then the adjusted Threshold for
2003 and the Threshold for subsequent years shall be calculated as described in paragraph 8.5.
For 2004, the Threshold will be 1700 acre-feet, but only if Annual
Contract Water in 2003 was 1600 acre-feet or more, and Annual Contract Water in 2004 is 1700
acre-feet or more. If either of the two requirements is not met , then the adjusted Threshold for
2004 and the Threshold for subsequent years shall be calculated as described in paragraph 8.5.
For 2005 , the Threshold will be 1800 acre-feet, but only if Annual
Contract Water in 2003 was 1600 acre-feet or more, Annual Contract Water in 2004 was 1700
acre-feet or more, and Annual Contract Water in 2005 is 1800 acre-feet or more. If any of the
three requirements is not met , then the adjusted Threshold for 2005 and the Threshold for
subsequent years shall be calculated as described in paragraph 8.5.
For 2006 and subsequent years through 2015, the Threshold shall be 1800
acre-feet, if the Threshold for 2005 was 1800 acre-feet or more and if, in each of the years 2006
through 2015, Annual Contract Water equals or exceeds 1800 acre-feet. If either of those
requirements is not met in any year, then the adjusted Threshold for that year and the Threshold
for subsequent years shall be calculated as described in paragraph 8.5.
During 2003, 2004, and 2005, and for a period thereafter, the Threshold
may be greater than the Ten-Year Average. Nevertheless Contract Water within the Threshold
shall be priced as High-Priced Water. While the Ten-Year Average is lower than the Threshold ,
there will be no Medium-Priced Water.
8.4.2 Refund of Payments During Threshold Initiation Period. If an
adjustment to the Threshold for a previous year is required during the Threshold Initiation
Period , then , within 30 days after the end of the year in which the adjustment is required ,
Englewood will refund to Centennial any excess payments made by Centennial for Contract
Water during the previous year.
8.5 Calculation of Threshold After Threshold Initiation Period. In January of
the year of termination of the Threshold Initiation Period and in each year thereafter, the
Threshold for that year shall be dete1mined as follows:
8.5.l Defin ition of Additional Terms. Unless the context clearly
requires otherwise, the following te1ms will have the meanings specified below:
Ten-Year Minimum: The smallest amount of Annual Contract
Water during the ten previous years . If the Threshold Initiation Period provided for in paragraph
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8.4 terminates prior to 2012, the Ten-Year Minimum shall be based on the assumption that the
amount of Annual Contract Water during 2002 and the previous nine years was 1500 acre-feet
per year. The Ten-Year Minimum is used hereunder only to increase the Threshold .
Threshold Buffer: An amount of hypothetical storage capacity
consisting of 15 .15 percent of the capacity of McLellan Reservoir. For purposes of Threshold
Buffer accounting, the 15 .15 percent is set at 900 acre-feet, and shall not vary with the physical
siltation of McLellan Reservo ir.
Threshold Sum: Annual Contract Water for the previous year plus
Threshold Buffer Amount for the previous year, calculated in January of each year.
Threshold Buffer Amount: The hypothetical amount of water
left in the Threshold Buffer. The Threshold Buffer Amount may not be Jess than zero or more
than the Threshold Buffer (900 ac re-feet). On January 1 , 2003, the Threshold Buffer Amount is
zero. The Threshold Buff er Amount for 2004 and subsequent years shall be calculated as the
Threshold Sum for the cuITent year less the Threshold for the previous year, with a maximum
value of 900 acre-feet and a minimum value of 0 acre-feet.
8.5.2 Calculation of the Threshold . The Threshold for the cuJTent year
shall be calculated as follows:
8.5.2.1 No Change in Threshold . If the Threshold Sum for the
current year is equal to or greater than the Threshold for the previous year and the Ten-Year
Minimum is equal to or Jess than the Threshold for the previous year, the Threshold for the
crnTent year shall be the same as the Threshold for the previous year.
8.5.2.2 Reduction in Threshold . If the Threshold Sum for the
current year is Jess than th e Threshold for the previous year, the Threshold Sum for the current
year shall become the Threshold for the current year.
8.5.2.3 Increase in Threshold. If the Ten-Year Minimum exceeds
the Threshold for the previous year, the Ten-Year Minimum shall become the Threshold for the
cuJTent year.
8.6 Single-Use Water and Reusable Water. Englewood , in its sole discretion ,
shall determine whether Offered Water is single-use water or reusable water and, if reusable
water, whether to offer the reuse rights to Centennial. Single-use water is that as to which, under
applicable Colorado water law and Englewood's decrees , the return flows after a first use belong
to the other appropriators on the stream. Reusable water is that as to which, under applicable
Colorado water Jaw and Englewood's decrees, the return flows may be re-used to extinction by
Englewood or its d es ignee, assuming retention of "dominion and control." If the Offered Water
is reusable water and Englewood offers the reuse rights to Centennial, Centennial, in its sole
discretion , shall determine whether to acquire the reuse rights associated with such water. If
Centennial elects to acquire such reuse rights and such water is delivered to Centennial by
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Englewood , all return flows from the first and subsequent uses of such reusable Delivered Water
shall belong to Centennial.
When Centennial intends to use reusable Delivered Water for which Centennial has not
acquired reuse rights, Englewood shall have the right to designate whether Centennial uses that
water or single-use Delivered Water, to the extent that both types of water are available for
Centennial's use. If Centennial intends to use any Delivered Water, whether single-use or
reusable, for release to the South Platte River to satisfy its augmentation obligations under any
decree for an augmentation plan , then Centennial shall not utilize for that purpose reusable
Deli ve red Water as to which Centennial has not obtained reuse rights, unless no single-use
Delivered Water is available to Centennial to satisfy its augmentation requirements.
8.7 Purchase Price for Water.
8.7.1 High-Priced Water. The purchase price for High-Priced Water
shall be $337 per acre-foot.
8.7.2 Medium-Priced Water. The purchase price for Medium-Priced
Water shall be $175 per acre-foot.
8.7.3 Low-Priced Water. The purchase price for Low-Priced Water shall
be $99 per acre-foot.
8.7.4 Reuse Rights. The purchase price for the reuse rights, if any,
associated with High-Priced Water, Medium-Priced Water and Low-
Priced Water shall be 33 percent of the purchase price set forth in
paragraphs 8.7.1, 8.7.2 and 8.7.3, respectively.
8.8 Example Calculation. Exhibit D hereto is an example of hypothetical
annual va lues calculated in accordance with this paragraph 8.
9. Centennial Payment Obligations. A portion of the Surplus Water available each
year s hall be paid for by Centennial, whether Centennial takes delivery of such water or not. The
remainder of the Surplus Water available each year may be taken by Centennial at its option,
and, if taken, shall be paid for by Centennial.
9.1 Payment for Obligated Water. Centennial is obligated to pay for Offered
Water that is priced as High-Priced Water or Medium-Priced Water, subject to the monthly
limits ("month" or "monthly" in this Agreement means calendar month) in paragraph 9.1.1 and
subject to the delivery rate limits in paragraph 9.1.2, whether or not Centennial takes delivery of
such water. This is Obligated Water. To the extent Centennial chooses not to take delivery of
Obligate d Water, the difference between Obligated Water and the amount of water taken by
Centennial is Untaken Water. Untaken Water is subsequently accounted for as if Centennial had
taken it and is included as Contract Water.
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9.1.1 Monthly Limits on Amounts of Obligated Water. There are two
sets of monthly limits on the amounts of Obligated Water as set forth in Tables 1 and 2. The
monthly limits in Table 1 will be in effect until the demand for treated and untreated water
within Centennial's Service Area in any year first equals or exceeds 20,000 acre-feet per year.
The monthly limits in Table 2 will be in effect after such demand first equals or exceeds 20,000
acre-feet per year.
Table 1. Monthly Limits in Acre-Feet Until Demand Eguals or Exceeds 20,000 acre-feet/yr:
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
390 390 390 750 1605 1920 2150 1650 1470 480 450 450
Table 2. Monthly Limits in Acre-Feet After Demand Eguals or Exceeds 20,000 acre-feet/yr:
Jan Feb Mar I Apr May Jun Jul Aug Sep Oct Nov Dec
520 520 520 11000 2140 2560 2860 2200 1960 640 600 600
If during any month Centennial accepts delivery of water in an amount in excess of the monthly
limit for that month in the applicable table, then , at Centennial's election, it may apply the excess
amount against the applicable monthly limit at any subsequent time in the same year.
9.1.2 Delivery Rate Limits. When Centennial's storage capacity in
McLellan Reservoir is nearing full safe capacity as determined in accordance with this paragraph
9.1.2 , the allowable rate of delivery (in cfs) of Obligated Water shall not exceed the delivery rate
shown in Table 3 for the appropriate month .
Englewood shall from time to time determine the full safe capacity of McLellan
Reservoir ("Full Safe Capacity") which may be Jess than actual physical capacity for safety
reasons (such as providing some storage capacity to contain runoff from thunderstorms).
Englewood shall promptly notify Centennial of its determination of Full Safe Capacity.
Centennial' s full safe capacity in McLellan Reservoir ("Centennial Full Safe Capacity") shall be
65.15 % of Full Safe Capacity based on this Agreement and the 1977 Ranch Creek Lease. The
capacity adjustments for the appropriate month from Table 4 shall be subtracted from the
Centennial Full Safe Capacity to determine the amount of storage ("Near Full Condition") which
will trigger the daily delivery rate limits in Table 3.
When the amount of water which Centennial has in storage in McLellan Reservoir
equals or exceeds Near Full Condition , the daily delivery rate limits in Table 3 will apply. When
the daily delivery rate limits from Table 3 for the appropriate month apply, Centennial's
obligation to pay for water under this Agreement will be reduced to payment for the amount of
water actually delivered or offered for delivery by Englewood, not to exceed the daily delivery
rate limit. When the amount of water which Centennial has in storage in McLellan Reservoir is
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less than the Near Full Condition, the daily delivery rate limits in Table 3 will not apply and the
rate of delivery shall be as determined by Englewood, in its sole discretion .
When the total amount of water in McLellan Reservoir equals or exceeds Full Safe
Capacity , neither pa11y will increase the amount of water stored in McLellan Reservoir.
Table 3. Daily Delivery Rate Limits in cfs When Centennial Storage is "Near Full Condition ":
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
8 8 8 17 35 43 48 35 33 10 10 10
Table 4. "Full Safe Capacity" Adjustment in Acre-Feet:
Jan Feb Mar I Apr I May Jun Jul Aug Sep Oct Nov Dec
48 48 48 1102 1210 258 288 210 198 60 60 60
9.2 Payment for Non-Obligated Water. Centennial is not obligated to take or
pay for Low-Priced Water or any water in excess of the amount of Obligated Water. If
Centennial chooses to take Low-P1iced Water or water in excess of the amount of Obligated
Water, that water if delivered becomes part of Contract Water for purposes of all subsequent
calculations under this Agreement. Englewood may dispose of Offered Water which Centennial
does not accept for delivery as Englewood determines in its sole discretion.
10. Place and Measurement of Deliveries: Pumping Costs: Notification.
10.1 Place of Delivery and Measurement. The place of delivery for all
Delivered Water shall be McLellan Reservoir, except that , at any time after completion of
Centennial's proposed South Platte Reservoir , the paities may mutually agree upon delivery to
Centennial's South Platte Reservoir. The measuring points for measurement of Delivered Water
are described in Table 5 and depicted on Exhibit E hereto.
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Table 5 : Water Delivery and Measurement Summary
Water Facility where Existing Owner -Delivery destination:
diversion measurement measurement (entity taking Mclellan So. Platte
structure* occurs device location measurements) Reservoir Reservoir
City Ditch City Ditch Pump Meter on discharge Englewood x x
Station piping
Nevada Ditch Nevada Ditch Flume Flume between Centennial x x
turnout st ructure
off ditch and So .
Platte Reservoir
pump station
forebav
Last Chance Last Chance Ditch Flume between Centennial x
Ditch Flume turnout structure
off ditch and South
Platte Reservoir
Dad Clark Dad Clark Gulch Dad Clark Gulch Englewood x
Gulch flows Flume (for lower downstream from
flows) Highline Canal
turnout structure
(for high storm flows Mass balance cal-Englewood x
exceeding flume culation of inflows
measurement based on Mclellan
capabilities) Reservoir water
levels
Highline Canal Dad Clark Gulch Meter: meter in-Englewood and x
Flume (Englewood) stalled in 36" pipe Centennial
and Dad Clark under Hwy C-470 .
Gulch Meter Measurement is
(Centennial) difference between
flow readings from
Flume and Meter.
Highline Canal Highline Canal Highline Canal Englewood x
Flume below gate Gate No. 29 + 427'
* -there also may be water from other sources or other water rights measured at these locations
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10 .2 Pumping Costs. Pumping costs incurred by Englewood for deliveries of
Contract Water to Centennial under this Agreement shall be borne by Englewood.
10.2.1 City Ditch Pump Station . Englewood owns and operates the City
Ditch Pump Station shown on Exhibit F hereto. Englewood shall bear all costs, including all
operation , maint e nance , electrical, repair and improvement costs, associated with delivery of
Contract Water to Centennial under this Agreement using the City Ditch Pump Station.
10.2.2 South Platte Reservoir Pump Station . Centennial owns and
operates the South Platte Reservoir Pump Station shown on Exhibit F hereto. Englewood shall
pay to Centennial Englewood's proportional share of operation and maintenance costs and
electrical costs associated with delivery of Contract Water to Centennial under this Agreement
using the South Platte Re servoir Pump Station. Englewood's propo11ional share of operation and
maintenance costs and electrical costs for delivery of Contract Water to Centennial under this
Agreement using the South Platte Reservoir Pump Station shall be determined by Centennial
using the same methodology as described in paragraphs 13.8 .2 and 13 .8.3 for determining such
costs for City Ditch Pump Station. Centennial shall bill Englewood for such costs after the end
of each month. Payment shall be due in full 45 days from date of delivery of the invoice.
Payments past due shall bear interest at the rate of 12 percent per year, compounded quarterly.
10.3 Notification by Englewood of Amounts Available for Delivery; Response
by Centennial. In order to facilitate the delivery of water under this Agreement by Englewood to
Centennial, the parties shall provide the following notices to each other.
10.3.1 Operational Notice. Englewood shall give Centennial reasonable
advance notice, which shall not be less than 24 hours , of the availability of Surplus Water for
delivery under this Agreement. Such notice may be oral or in writing, and shall include, at a
minimum , the quantity of water, rate of delivery of water, the identity of the water right which is
the source of the water and whether the water is single-use water or reusable water. Centennial
shall notify Englewood whether Centennial accepts or rejects delivery of such water within a
reasonable time after receipt of Englewood 's notice , which shall not be less than 12 hours . Such
notic e may be oral or in writing.
10.3.2 Planning Notice. No Jess than 30 days before the beginning of
eac h month , Englewood s hall notify Centennial of the quantity of Surplus Water Englewood will
have available, or attempt to have available, for delivery during that month , whether such water
is si ngle-use water or reusable water, and if reusable water, whether Englewood is offering the
reuse rights to Centennial. Within 10 days after receipt of Englewood's notice , Centennial shall
notify Englewood of the maximum amount of such water Centennial may accept and whether
Centennial may elect to acquire the reuse rights from Englewood. The notices provided for in
this paragraph 10.3.2 are for planning purposes only and shall not bind either party .
11 . Measurement Devices , Recordkeeping, Billing and Payment.
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11.1 Centennial Measurement Devices and Recordkeeping. Accurate
continuous-recording flow measurement devices shall be instaJJed and maintained by Centennial
at each of the measuring points described in Table 5 that are owned by Centennial. The records
of measurement of Delivered Water during each month shall be provided by Centennial to
Englewood within ten days after the ,end of each month .
l 1.2 Englewood Measurement Device s and Recordkeeping . Accurate
continuous-recording flow measurement device s shall be installed and maintained by Englewood
at eac h of the measu ring points described in Table 5 that are owned by Englewood. The records
of measurement of Delivered Water during each month shall be provided by Englewood to
Centennial within ten days after the end of each month . Records of deliveries shall include
deliveries made by "bookovers" from Englewood to Centennial of Englewood's water
previously stored in McLellan Reservoir .
11 .3 Annual Accounting and Calculations . Englewood shall keep records of
Delivered Water and Untaken Water accounted for as Contract Water which are necessary or
useful in the calculation of prices and amounts due , including, but not limited to , the Threshold ,
the Ten-Year Average, the Ten-Year Minimum, Untaken Water, Annual Contract Water,
monthly deliveries, and the like. By January 15 of each year, Englewood shall deliver to
Centennial an accounting of such items for the previous year and Englewood's calculations of
the Threshold, the Threshold Buffer Amount and the Ten-Year Average for the current year. By
January 31 of each year, Centennial shaJJ notify Englewood of the items to which objection is
made. In the absence of such notification , or as to items as to which no objection is made, the
accounting for the previous year and Englewood 's calculations of the Threshold, the Threshold
Buffer Amount and the Ten-Year Average for the current year s hall be deemed to be correct.
11.4 Reconciliation, Billing and Payment. Englewood and Centennial shall
reconcile their respective accounting records after the end of each month. Thereafter,
Englewood shall bill Centennial for Contract Water under this Agreement during that previous
month . Payment shall be due in full 45 days from date of delivery of the invoice. Payments past
due shall bear interest at the rate of 12 percent per year, compounded quarterly. Within 60 days
after the end of each year, a reconciliation shall be made of billings for that year, and any
necessary adjustment payments shall promptly be made between the paities.
12. Amendments to 1977 Ranch Creek Lease. Paragraphs 21and22 of the 1977
Ranch Creek Lease are replaced in their entirety by the following provisions and said paragraphs
21 and 22 sh al I hereafter be of no further force or effect:
12 . l Englewood agrees to sell and Centennial s hall have the option to purchase
all _of Englewood's "Paid Deliveries " water at the initial time of its availability each year as
hereinafter provided. "Paid Deliveries" water is that water available to Englewood under
paragraphs 3.3 through 3.7 of the Settlement Agreement dated August 11, 1995 , among
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Englewood , Cyprus Climax Metals Co ., and the City and County of Denver, acting by and
through its Board of Water Commissioners (" 1995 Englewood/Cyprus/Denver Agreement").
12.2 If Centennial accepts delivery of Paid Deliveries water at the initial time
of its availability each year to Englewood , then neither the Ten-Year Minimum nor the Ten-Year
Average shall include the Paid Deliveries water taken by Centennial. Centennial shall have any
rights to reu se of Paid Deliveries water.
12.3 If Centennial does not accept delivery of Paid Delive1ies water at the
initial time of its availability each year to Englewood , then Englewood may take and use such
water as Englewood determines, including storing such water and later including such water in
the Surplus Water Englewood sells to Centennial under this Agreement. In this event, Paid
Deliveries water shall be treated in the same manner as provided for other Surplus Water in this
Agreement , including the inclusion of such Paid Deliveries water in the calculation of the Ten-
Year Minimum and the Ten-Year Average hereunder.
12.4 The price per acre-foot for Paid Deliveries water accepted and taken by
Centennial under paragraph 12.2 shall be the sum of 1) the amount charged per acre-foot by
Denver to Englewood for delivery of such water, 2) a fixed charge of $20 per acre-foot paid by
Centennial to Englewood, and 3) the cost per acre-foot to Englewood of pumping such water
from City Ditch to McLellan Reservoir determined in accordance with the methodology
described in paragraphs 13.8.2 and 13 .8.3 or, if such water is delivered to Centennial through the
High Line Canal, the amount per acre-foot Denver charges Englewood for delivery of such water
through the High Line Canal or, if such water is delivered to Centennial through the Nevada
Ditch , the amount the Nevada Ditch Holding Company charges per acre-foot to Englewood for
delivery of such water through the Nevada Ditch.
12.5 Englewood and Centennial agree to cooperate in scheduling deliveries of
Paid Deliveries water to Centennial ; however , Englewood shall be responsible for scheduling
deliveries with Denver.
12 .6 Centennial shall comply with paragraph 3 .3.5 of the 1995
Englewood/Cyprus/Denver Agreement. A copy of paragraph 3.3.5 is attached as Exhibit G
hereto .
12.7 All other pro vision s of the 1977 Ranch Creek Lease remain in full force
and effect.
13 . Physical Facilities Lease.
13.l Grant of Lease . In addition to the provisions for sale and delivery of water
set forth above and elsewhere herein , Englewood , as lessor, leases to Centennial , as Jessee , and
Centennial , as lessee , leases from Englewood , as lessor, a portion of the capacity of certain
Englewood physical facilities described below , to be used for the delivery and storage of water
on the terms and conditions more particularly set forth below ("Facilities Lease").
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13.2 Englewood Physical Facilities in Which Capacity ls Leased to Centennial;
Use of Same. The physical facilities in which capacity is leased by Englewood to Centennial
("Physical Facilities") are McLellan Reservoir, City Ditch from the Chatfield Reservoir ditch
outlet manifold downstream to the Englewood City Ditch Pump Station , Nevada Ditch from the
Chatfield Reservoir ditch outlet manifold downstream to the turnout structure on the ditch at
which water is delivered to Centennial, the Englewood City Ditch Pump Station , the Discharge
Facility from McLellan Reservoir to the South Platte River, and the pipeline from McLellan
Reservoir to the Discharge Facility, which is used both to caJTy water from the City Ditch Pump
Station to McLellan Reservoir and from McLellan Reservoir to the Discharge Facility. The
Physical Facilities are depicted on Exhibit H hereto. The leased capacity may be used by
Centennial to store and/or c aJT y a ny water which may legally be stored and/or carried therein .
Englewood shall be solely responsible for all necessary or desirable contacts with third parties ,
including the United States Army Corps of Engineers , related to use of the Physical Facilities by
Centennial under this Facilities Lease.
13.3 McLellan Reservoir. Englewood hereby leases to Centennial the
exclusive right to use l 5 .15 per cent of the capacity of McLellan Reservoir for storage of water,
subject to the rights of each party to use the temporarily unused capacity of the other party as
provided in paragraph 13 .3.8 below .
13 .3.l Determination of Capacity of McLellan Reservoir. The parties are
uncertain as to the present actual capacity of McLellan Reservoir because the capacity changes
with siltation , and because minor iITegularities in the elevation of the bottom of the reservoir
limit the accuracy of any determination of capacity. For purposes of determining the initial
amount of capacity available to Centennial hereunder, the present actual capacity of McLellan
Reservoir shall be deemed to be 5940 acre -feet, and the capacity initially leased to Centennial is
900 acre-feet. Either pa11y , at its own expense , may obtain a survey by a professional engineer
or surveyor licensed jn the State of Colorado to better de.te1mine the actual capacity of McLellan
Reservoir at the maximum water elevation level and shall provide the results of such survey to
the other party. Englewood s hall reasonabl y determine the maximum water elevation level
which is both safe and presents no appreciable risk of damage to the physical structures. If either
party obtains such a survey and s uch s urvey shows a different capacity than 5940 acre-feet at the
maximum water elevation level determined by Englewood , then the parties shall attempt to agree
upon a revised capacity and a revised lease payment for McLellan Reservoir for purposes of this
Facilities Lease ; provided , however, that the capacity available to Centennial hereunder shall not
exceed 900 acre-feet.
13.3 .2 No Reduction in Payment Due to Siltation. The charge paid by
Centennial to Englewood for use of McLellan Reservoir capacity will not be reduced
propo11ionately if the capacity available to Centennial hereunder is reduced below 900 acre-feet
due to siltation.
13.3.3 Removal of Silt, or other Restoration of Capacity, Performed by
Englewood. If Englewood determines to restore the storage capacity of McLellan Reservoir to
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5940 acre-feet by dredging , enlargement or other methods, then Centennial shall have the option
of paying 15 .15 per cent of the cost thereof, and of using 15.15 per cent of the increase in
capacity , pursuant to this Facilities Lease. If Englewood determines so to restore capacity, it
shall give notice to Centennial , in reasonable detail , of its plans for restoring capacity, and an
estimate of the anticipated cost thereof. Centennial shall have 45 days after receipt of notice
from Englewood, to exercise its option to pay 15 .15 per cent of such cost. Centennial ·shall give
notice of the exercise of its option to Englewood. Englewood shall bill Centennial for
Cent.enni al' s 15 .15 percent of such costs. Payment shall be due 45 days from the date of deli very
of the invoice . If Centennial does not exercise its option as provided for herein , then all
increases in capacity resulting from Englewood 's proposed project shall belong solely to
Englewood. Englewood , in its sole discretion, may decide to increase the storage capacity of
McL ellan Reservoir to an amount in excess of 5940 acre-feet, at Englewood's expense . If
Englewood does so , then Englewood shall have the sole right to use the storage capacity in
excess of 5940 acre-feet.
13 .3.4 Removal o f Silt by Centennial. Centennial may remove silt to
restore the capacity of McLellan Reservoir to 5940 acre-feet at its own initiative and at its own
cost ; provided, however, that the capacity available to Centennial under this Facilities Lease as a
result of such silt removal shall not exceed 900 acre-feet. If Centennial desires to remove silt at
its own cost, then Centennial shall give Englewood notice of its proposed silt removal project in
reasonable detail, including the proposed plans, specifications , construction contract, disposition
of the removed mate1ial, name of the contractor (or contractors) who will be permitted to bid, a
cost estimate by a qualified professional engineer, name of an engineering firm to observe the
work , public liability insurance to be provided, indemnification of Englewood to be provided,
and the bond to be obtained. Englewood shall have the right, reasonably exercised, to disapprove
or require alteration of all or any part of the proposed silt removal project including the plans ,
specifications , contractor, bond , engineering firm, method of disposition of removed material,
public liability insurance to be provided , indemnification of Englewood, or any other aspect of
the proposed project, by notice to Centennial within 45 days after receipt of Centennial's notice.
If Englewood gives such notice , Centennial shall not proceed with its proposed silt removal
project without written approval from Englewood. If Englewood does not give such notice,
Centennial may proceed with its proposed silt removal project. Centennial shall not be entitled
to undertake any actions to restore or increase the capacity of McLellan Reservoir other than silt
removal.
13.3.5 Reduction in Stora2e Capacity by Causes Other Than Siltation. If
the capacity of McLellan Reservoir is reduced below 5940 acre-feet other than by siltation, then
Englewood shall proceed, within a reasonable period of time after the reduction, to restore lost
capacity to Centennial by reasonable and practical repairs or alterations to McLellan Reservoir,
at Englewood 's sole cost. In the alternative, Englewood may elect to transfer a portion of its
own capacity in McLellan Reservoir to Centennial. If Englewood restores lost capacity to
Centennial by a transfer of a portion of Englewood 's own capacity, then Englewood may
subsequently restore lost capacity to Centennial by repairs or alterations to McLellan Reservoir
at Englewood 's sole cost, and the Englewood capacity previously transferred to Centennial shall
then be returned to Englewood.
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13.3.6 Drainage for Operations or Repairs. If Englewood determines, in
its sole discretion, that it is necessary to drain water from McLellan Reservoir to facilitate repairs
or replacements or to meet safety requirements, or because of pollution or contamination, then
the pai1ies shall share the loss of water in proportion to the amounts of water each had in storage
in McLellan Reservoir prior to the drainage. Englewood shall give Centennial advance notice, if
possible, of such drainage event.
13.3.7 Losses from Seepage, Evaporation. Failure of Facilities and the
Like. Losses of water from McLellan Reservoir caused by seepage, evaporation, failure of
facilities, or any cause beyond the reasonable control of Englewood shall be borne by the pa11ies
in proportion to the amounts of water each had in storage in McLellan Reservoir when the losses
occuned. Englewood shall determine evaporation and seepage losses according to recognized
engineering standards .
13.3 .8 Storage By Either Party in Capacity of Other Party. Either party
may from time to time have capacity in McLellan Reservoir which is not occupied by water
stored by that party ("temporarily unused capacity"). Either party may store its water in the
temporarily unused capacity of the other party. Such water so stored shall be removed from such
temporarily unused capacity when the other pai1y wishes to use such temporarily unused
capacity and has water available which it could store therein. If such water cannot be removed in
a timely manner from such temporarily unused capacity, then such water shall be spilled or
booked over to the other party at no cost , to the extent the other party could have delivered water
into such temporarily unused capacity.
13.3.9 Addition of Substances to McLellan Reservoir. Either party may
add customary chemicals , such as copper sulfate, to the water in McLellan Reservoir to control
algae and other undesirable aquatic vegetation. The party making such an addition, however,
agrees as follows:
13.3.9.1 Coordination. The party making the addition shall
ascertain from the other party that the other party has not added chemicals within a period of
time such that the previously added chemicals may still be present, in some degree, and thus
impact the appropriateness of a further addition of chemicals. The party making the addition
shall also ascertain from the other party any releases from the reservoir to the South Platte River
or City Ditch which may be contemplated during the period when the chemical will be present,
to any significant degree, in the water of the reservoir. No addition shall be made if it would
hamper the ability of either party to make a release from McLellan Reservoir to the South Platte
River or City Ditch .
13.3.9.2 Permits. The party making the addition shall strictly follow
al l applicable statutes and regulations, and obtain all necessary permits from governmental
agencies having or asserting ju1isdiction over the addition, and strictly comply with the terms of
a n y permit or permits, and advise the other party of its actions and the schedule for the addition.
The party making the addition shall bear the risk that a governmental body may insist that a
particular permit was necessary, but was not obtained, notwithstanding a good faith belief on the
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part of the pai1y making the addition that the particular permit was unnecessary or that a
sufficient permit had been obtained.
13.3.9.3 R ecommended Practices. The party making the addition
shall strictly follow the manufacturer's rec ommended practices for use of the chemical to be
added , in every respect.
13.3.9.4 Fi nes , Dama!:!es, Fees . The party making the addition shall
pay all fines or damages, regardless of the entity or person upon whom they are levied, which
result from or are related to the addition of the chemical , and any attorneys fees, costs and
expenses of the other party occasioned the reby.
13.3.10 No E ffl uent Directly Into City Ditch or McLellan Reservoir.
Without the prior written consent of the Englewood City Council, which may be withheld
without cause , Centennial shall not disc ha rge effluent from a wastewater treatment plant directly
into City Ditch or McLellan Reservoir. The foregoing prohibition shall not apply to effluent
from a wastewater treatment plant, whi c h meets the applicable discharge permit effluent
limitations, and which is carried to Centennial's South Platte Reservoir and commingled with
water already therein before its caniage to McLellan Reservoir.
13.3.11 Record s, Accounting. Englewood sha11 keep accurate daily
records of the amount of water which e ach party has in storage in McLe1Jan Reservoir.
Centennial shall keep and promptly su p ply Englewood with accurate daily records of all
deliveries of Centennial's water into M cLe1lan Reservoir, and its withdrawals from same,
including records of the method of deli very (e.g. pumping , flow from the lligh Line Canal, flow
from Centennial wells), the decree unde r which the water was delivered, and whether the water
is single-use or reusable water. Englewood shall keep similar records of its deliveries into and
withdrawals from McLe1Jan Reservoir. Each party may review the records of the other during
business hours.
13.3.12 Lease Payment for Use of McLellan Reservoir Capacity.
Centennial shall pay Englewood $233,500 per year for use of McLellan Reservoir capacity
hereunder. The annual payment shall be made in quarterly insta1lments due on the first day of
January , April, July and October of each year. The first payment shall be due on the date of this
Agreement.
13.4 City Ditch Faci lities . Englewood hereby leases to Centennial the
exclusive right to use all excess capacity in the City Ditch from the Chatfield Reservoir ditch
outlet manifold downstream to the Englewood City Ditch Pump Station, the Englewood City
Ditch Pump Station, the Discharge Facility from McLellan Reservoir to the South Platte River,
and the pipeline from McLellan Reserv oir to the Discharge Facility, which is used both to carry
water from the City Ditch Pump Station to McLellan Reservoir and from McLe1lan Reservoir to
the Discharge Facility ("City Ditch Facili ties"). Excess capacity for purposes of this Facilities
Lease is defined as the maximum carrying capacity from time to time of that portion of the City
Ditch Facilities Centennial desires to u se after the capacity needs of others who presently have
rights to use of capacity in City Ditch a re satisfied, including but not limited to Englewood and
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capacity used by Englewood for delivery of water to Centennial under this Agreement , and the
users of City Ditch as desc1ibed in paragraph 13.4.2 .
13.4 .l Determination of Capacity. Englewood shall determine from time
to time the maximum carrying capacity of the City Ditch Facilities, in its sole and reasonable
discretion, based upon safety , hydraulic capacity, and avoidance of injury to the physical
facilities , and Englewood 's relationships with third parties concerning use of capacity of the City
Ditch Facilities .
13.4 .2 Existing City Ditch Agreements with Third Parties. Use of the
City Ditch is presently subject to the rights of contract users of the City Ditch 1860 priority water
right south of Harvard Gulch ("Contract Users"), the rights of the City and County of Denver
under an agreement between Denver and Englewood dated October 3 , 1995 attached hereto as
Exhibit I, and the rights of Littleton Cemetery under an agreement dated May 23, 1933 attached
hereto as Exhibit J (collectively the "Existing City Ditch Agreements "). The parties recognize
the possibility that one or more of the Existing City Ditch Agreements could be terminated
during the term of this Agreement. Englewood shall have the sole right to deal with and receive
consideration from the contract Users, the City and County of Denver and the Littleton Cemetery
concerning any and all aspects of the Existing City Ditch Agreements , including any and all
aspects of termination thereof. Any capacity in City Ditch that becomes available upon
termination of any one or more of the Existing City Ditch Agreements shall become
Englewood 's capacity ("Englewood Reversionary Capacity"), subject to use by Centennial only
in accordance with the priorities set forth in paragraph 13.4.3.
13.4.3 Priority to Use of Capacity in City Ditch Facilities. Use of
capacity in the City Ditch Facilities shall be in the following order of prio1ity:
13.4 .3.1 City Ditch Water Rights and Englewood Reversionary
Capacity. City Ditch water rights with priority date of 1860, including Englewood's ownership
of same and contract users of same ; the one share of Nevada Ditch water transferred to City
Ditch by the Littleton Cemetery Association by decree of the District Court for Douglas County
in Case No. 1212 in 1933 ; and water carried by Englewood, from any source , in Englewood's
Reversionary Capacity.
13.4 .3.2 Ene:lewood's Boreas Pass No. 2 Ditch Water Right.
Englewood's transmountain Boreas Pass No. 2 Ditch water right which Englewood purchased in
the 1950's , prior to the 1977 Ranch Creek Lease.
13.4.3 .3 1948 McLellan Reservoir Storae:e Right. Englewood's
50 % interest and Centennial's 50% interest shall share equally in the available capacity in the
City Ditch Facilities ; provided, however, that for purposes of pri01ity to use available capacity,
Englewood may choose to use capacity in the City Ditch Facilities associated with its 50%
interest in the 1948 McLellan Reservoir storage right to carry other Englewood water rights or
contract water owned by Englewood. For purposes of priority to use available capacity,
Centennial's use of capacity in the City Ditch Facilities associated with its 50% interest in the
1948 McLellan Reservoir storage right is limited to the carriage of its 50% interest in the
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McLellan Reservoir storage right only and Centennial may use such capacity to carry other of its
water supplies only under the priority to use available capacity provided by paragraph 13.4.3.6.
13.4.3.4 Paid Deliveries Water. Paid Deliveries water to be
delivered to Englewood during the m onths of May and June, unless Denver and Englewood
agree on an ad hoc basis to a delivery during some other period of time.
13.4.3 .5 Other Englewood Water Rights and Contract Water. All
Englewood w a ter rights decreed for diversion at City Ditch and all of Englewood's contract
deliveries of water provided by others , other than "Paid Deliveries" water described in paragraph
13.4.3.4 above , inclusive of any such future water rights and contract water.
13.4.3.6 Centennial Water Rights and Contract Water. All of
Centennial's water rights decreed for di version at City Ditch and all of Centennial's contract
deliveries of water provided by persons or entities other than Englewood, inclusive of any such
future water rights and contract water.
13.4.4 Englewood Not to Make Additional Transfers of Capacity In City
Ditch Facilities. Englewood will not make further leases , assignments or other transfers of
capacity in the City Ditch Facilities wi thout the prior written consent of Centennial, except as
otherwise provided in paragraph 13.4.2 . Centennial may withhold its consent in its sole and
reasonable discretion , except that Cente nnial will grant its consent to transfers in settlement of
litigation or threatened litigation with third parties, by or against Englewood, which will not
materially affect the volume of water which Centennial can carry through the City Ditch
Facilities.
13.5 Nevada Ditch . E nglewood hereby leases to Centennial all of Englewood's
capacity in the Nevada Ditch which re m ains after satisfaction of Englewood 's needs for capacity
in the Nevada Ditch, including capacity used by Englewood for delivery of water to Centennial
and without regard to whether Englew o od uses its Nevada Ditch capacity for delivery through
the Nevada Ditch below the Nevada Ditch valve house (see Exhibit F) after delivery through the
Chatfield Reservoir ditch outlet manifold , or uses its Nevada Ditch capacity for delivery of water
through City Ditch .
13.5 .l Nevada D itch By Laws and Englewood Capacity. The lease of
Englewood's capacity in the Nevada Ditch to Centennial shall be subject to the bylaws of the
Nevada Ditch Holding Company, and for purposes of the bylaws as presently in force or as
changed in the future , shall be deemed to be between Englewood and Centennial. Those bylaws
shall determine Englewood 's share of the capacity of the Nevada Ditch.
13 .5.2 Englewood Not to Make Additional Transfers of Capacity In
Nevada Ditch. Englewood will not m ake further leases , assignments or other transfers of
capacity in the Nevada Ditch without the prior written consent of Centennial. Centennial may
withhold its consent in its sole and reasonable judgment, except that Centennial will grant its
consent to transfers in settlement of litigation or threatened litigation with third parties, by or
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against Englewood, which will not materially affect the volume of water which Centennial can
convey through the Nevada Ditch.
13.6 Englewood's Nevada Ditch Capacity Delivered at City Ditch. Because of
its ownership of City Ditch, and its ownership of shares in the Nevada Ditch Holding Company,
Englewood has the right to caiTy water through the Chatfield Reservoir ditch outlet manifold,
using capacity in the Chatfield Reservoir ditch outlet manifold allocated to its ownership in the
two ditches . The piping system below the Chatfield Reservoir ditch outlet manifold bifurcates
into two pipes, one of which is for City Ditch and one of which is for Nevada Ditch. Centennial
will not object if Englewood takes water transported through the Chatfield Reservoir ditch outlet
manifold pursuant to Englewood 's right to use capacity in the Nevada Ditch through the City
Ditch pipe instead of through the Nevada Ditch pipe.
13.7 Lease Payment for Use of Capacity in City Ditch Facilities and in Nevada
Ditch. Centennial shall pay Englewood $35,000 per year , plus annual operation and
maintenance costs described in paragraph 13.8, for use of capacity in the City Ditch Facilities
and in the Nevada Ditch hereunder. The annual payment shall be made in quarterly installments
due on the first day of January , April, July and October of each year. The first annual payment
shall be due on the date of this Agreemen t.
13.8 Payment of Annual Operation and Maintenance Costs as Additional Lease
Payment. As an additional payment under this Facilities Lease, Centennial shall pay Englewood
each year a portion of Englewood's actual operation and maintenance costs for the City Ditch
Facilities and for Nevada Ditch to be determined as follows:
13 .8.l City Ditch Operation and Maintenance Costs. Centennial shall pay
to Englewood a propo11ional share of th e operation and maintenance costs of City Ditch from the
valve house to the Englewood City Ditch Pump Station, as reasonably determined by
Englewood. Such costs shall include costs for personnel, preventive maintenance and repair
maintenance. Englewood shall keep accurate records of such costs and such records will be
available for inspection by Centennial during business hours. The proportional share of such
costs to be paid by Centennial shall be determined monthly by multiplying such costs by the ratio
of the volume of water in acre-feet carried by Centennial in City Ditch during that month to the
total volume of water in acre-feet canied in City Ditch during that month, as measured at the
flume below the valve house. (See Ex h ibit F)
13 .8.2 City Ditch Pump Station and Pipeline to McLellan Reservoir and
Discharn:e Facilities from McLellan Reservoir to the South Platte River Operation and
Maintenance Costs. Centennial shall pay to Englewood a proportional share of the operation and
maintenance costs of the City Ditch Pump Station and pipeline to McLellan Reservoir, excluding
electrical pumping costs, and of the operation and maintenance costs of the Discharge Facility
from McLellan Reservoir to the South Platte River, as reasonably determined by Englewood.
Such costs shall include costs for personnel, preventive maintenance and repair maintenance.
Englewood shall keep accurate records of such costs and such records shall be available for
inspection by Centennial during business hours. The proportional share of such costs to be paid
by Centennial shall be determined monthly by multiplying such costs by the ratio of the volume
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of water in acre-feet pumped by Centennial from the City Ditch Pump Station to McLellan
Reservoir dming that month to the total volume of water in acre-feet pumped from the City Ditch
Pump Station to McLellan Reservoir during that month , as measured at the meter on the
discharge piping from City Ditch Pump Station.
13.8.3 City Ditch Pump Station Electrical Pumping Costs. Centennial
s h a ll pay to Englewood a proportional share of the electrical cost of pumping water at the
Englewood Cit y Ditch Pump Station , determined by multiplying the electrical cost during the
billing period by the ratio of the volume of water in acre-feet pumped by Centennial during the
billin g period to the total volume of water in acre-feet pumped during the billing period.
13 .8.4 Nevada Ditch. Centennial shall pay to Englewood any costs of the
Nevada Ditch Holding Company expressly assessed against Englewood for carriage of water by
Centennial , other than Contract Water delivered by Englewood to Centennial under this
Agreement. Englewood shall pay all other assessments of the Nevada Ditch Holding Company
without reimbursement by Centennial.
13.8 .5 Billing and Payment. Englewood shall bill Centennial for the
additional lease payment due under this paragraph 13 .8 after the end of each month. Payment
shall be due in full 45 days from date of delivery of the invoice. Payments past due shall bear
interest at the rate of 12 percent per year, compounded quarterly.
13.9 Control of Operations. Englewood shall have complete and exclusive
control of the operation , maintenance and repair of the Physical Facilities leased to Centennial
hereunder and any alterations, improvements or additions thereto, and of replacement thereof,
except as expressly provided in paragraph 13 .3 .4 above for removal of silt from McLellan
Reservoir by Centennial.
13.10 Timeliness of Repairs . If Englewood fails to take prompt and reasonable
steps to repair any of the Physical Facilities leased to Centennial hereunder in whole or in part,
and such failure adversely affects Centennial 's water delivery and/or storage potential , the
pa11ies agree to cooperate in allowing Centennial to timely repair any of such Physical Facilities ,
following approval of the proposed repair plan by Englewood , which approval may not be
unreasonably withheld. Englewood shall reimburse Centennial for the costs of such_repair
within 12 months of the date of completion of the repair, unless otherwise agreed to by
Centennial and Englewood.
14 . Grant of Easements to Centennial. Englewood agrees to grant to Centennial ,
without charge to Centennial, certain permanent easements over, under and across property
owned or controlled by Englewood ("Centennial Ease ments") upon the following terms and
conditions:
14.1 Specific Instrument. Each of the Centennial Easements shall be granted in
a specific instrument , to be executed after a surveyed legal description of the easement is
obtained by Centennial , and prior to the time of commencement of construction by Centennial of
any facilities within the easement.
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14.2 · Locations. The Centennial Easements shall be over, under and across
properties owned or controlled by Englewood surrounding McLellan Reservoir north of County
Line Road and across the City Ditch rig ht of way.
14 .3 Term and Type. The Centennial Easements shall be permanent and non-
exclusive.
14.4 Purpose and Scope. The Centennial Easements shall be for the purpose of
transpo11ing water, and to that end Centennial may install , maintain, repair, replace , operate and
remove pipes, pumps and related faci Ii ties in the easements.
14.5 Route Selection. Englewood shall have the right reasonably to select the
route of any of the Centennial Easements, so as to avoid the location of, or minimize disruption
of, existing or anticipated streets, struct ures, pipes, ditches , utility facilities, or areas to be
developed, and/or to concentrate easements for various utilities into particular corridors .
14.6 Reasonable Standards. Englewood may set reasonable standards for the
depth at which pipes must be installed , compaction of earthwork, protection of Centennial's
pipes or other facilities against anticipa ted surface uses, protection of existing structures and
ditches, separation from or protection of adjacent utilities, the repair or replacement of streets or
other facilities or structures through which the pipes must be installed , the timing of construction
so as to minimize disruption of traffic or other ongoing activities, and the maintenance and repair
of facilities constructed by Centennial.
14 .7 Limitation on Oblieation to Grant. Englewood shall not be obligated to
grant any easement which, in the reasonable opinion of Englewood , is likely to necessitate a
review under Section 7 of the Endangered Species Act or any similar or successor legislation.
14.8 Limitation on Locations and Standards Selections. Englewood shall not
select locations of, or standards for the use of, the Centennial Easements which unreasonably
increase the cost to Centennial for installation , maintenance, repair, replacement, operation or
removal of Centennial 's facilities within the Centennial Easements.
14.9 Englewood Relocation and Reconstruction . Englewood may reasonably
relocate any of the Centennial Easements and reconstruct the facilities therein , at Englewood's
sole expense and risk. The relocation and/or reconstruction must be accomplished without
interruption of water service to the Centennial Service Area. The reconstructed facilities must be
equivalent to those replaced. Englewood shall give Centennial reasonable advance notice of any
proposed relocation or reconstruction, and consider all written suggestions of Centennial
concerning same.
14.10 Exclusions. It is not intended by the parties that the Centennial Easements
will include easements for the use of City Ditch or any length of the City Ditch right of way, or
the High Line Canal, or McLellan Reservoir to convey or store water.
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15 . Englewood 's Option to Participate in the Construction and Use of New
Centennial Facilities. If Centennial decides to construct new facilities for the transmission of
water from Chatfield Reservoir or from Englewood's Union Avenue Pump Station to City Ditch
or McLellan Reservoir or to or through any of Englewood's property suJTounding McLellan
Reservoir north of County Line Road, Englewood shall have the option to participate in the
construction and use of such facility or facilities in accordance with the following provisions .
15 .1 Notifications. Centennial shall , prior to preparation of final plans and
specifications for such facility or facilities, provide Englewood with conceptual information
concerning the estimated cost , sizing, location and operation of the facility or facilities . Within
60 days after receipt of s uch conceptual information, Englewood shall notify Centennial in
writing that Englewood is interested in participating in the construction and use of the facility or
facilities. If Englewood does not give s uch notice to Centennial , Englewood shall have no
further rights hereunder to pai1icipate in s uch facility or facilities.
15 .2 Desi!rn and Englewood Participation. If Englewood gives notice that it
desires to pa11icipate in the construction and use of the facility or facilities, Englewood and
Centennial shall attempt to reach agreement as to the design of the facility or facilities to
accommodate use by both Englewood and Centennial and the terms of Englewood 's
participation in and use of the facility, including but not limited to control of operation,
maintenance and repair and allocation of costs of operation, maintenance and repair. If no
agreement can be reached between Englewood and Centennial within 120 days after
Englewood 's notice to Centennial of Englewood's desire to participate in the construction and
use of the facility or facilities, Centennial shall be free to proceed with the facility or facilities
and Englewood shall have no further rights hereunder with respect to such facility or facilities.
15 .3 En g]ewood Payments. If Englewood participates in construction and use
of any facility or facilities hereunder, Englewood shall within 60 days of completion of
construction thereof, pay its proportionate share of the costs and expenses of construction of the
facility or facilities based on the relation of the capacity reserved for Englewood 's use (when full
capacity is being used) to the total capacity of the facility or facilities. Costs and expenses shall
include all costs and expenses including design, construction, interest and financing costs. If
Englewood desires to pa11icipate in construction and use of a facility or facilities but does not
then have payments available from Cen tennial under this Agreement with which to pay its
proportionate share of the costs and expenses of construction of the facility or facilities,
Centennial and Englewood agree to use their best efforts to establish an aJTangement by which
Centennial will construct the facility at Centennial's initial cost and expense, with Englewood
repaying to Centennial Englewood 's proportionate share of costs and expenses of construction of
the facility or facilities , together with interest thereon at the then prevailing interest rates on
AAA rated municipal debt, out of payments received by Englewood under this Agreement in
excess of $100 ,000 per year. If a mutually agreeable aJTangement cannot be established , then
Englewood may elec t either to pay its proportionate share of the costs and expenses of
construction of the facility or facilities and participate in the facility or facilities or not to
participate in the facility or facilities
16 . Capital Improvements to City Ditch Facilities.
P :\dianas\AGMTS\2003WaterFacilitiesSupplyAgreement .doc
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16. l Improvements to City Ditch and/or Enelewood City Ditch Pump Station.
Centennial may construct improvements to City Ditch (such as replacing the Marcy Gulch
siphon to increase its capacity) or to the Englewood City Ditch Pump Station (such as removing
the intake manifold and constructing a wet well), at its sole cost and expense, and upon approval
by Englewood of plans and specifications for such improvements, which approval shall not be
unreasonably withheld. Englewood may, during the term of this Agreement and at its sole
discretion , acquire such improvements from Centennial by reimbursing Centennial for the costs
and expenses of construction of such improvements, plus CPJ adjustment as described in
paragraph 18 .1 below, less depreciation under an agreed upon depreciat~on schedule for such
improvements. Centennial shall have the first right to use the increased capacity resulting from
any such improvement which has not been so acquired by Englewood . Such first right to use
shall not extend to any other portion of the City Ditch or of the Englewood City Ditch Pump
Station. For example , if Centennial were to enlarge the capacity of a given portion of City Ditch
by 10 cfs , and thereby establish its prio ri ty of usage of this 10 cfs , said enlargement by
Centennial would not entitle Centennial to any priority of usage of the Englewood City Ditch
Pump Station , if such pump station capacity were limiting at a given time. Englewood shall
operate such improvements whether owned by Centennial or acquired by Englewood.
16.2 Separate New Facilities on City Ditch. Centennial may construct separate
new facilities on City Ditch which will principally benefit Centennial (such as a pump station
along City Ditch between Chatfield Reservoir and the Englewood City Ditch Pump Station), at
its sole cost and expense, and upon approval by Englewood of plans and specifications for such
facilities, which approval shall not be unreasonably withheld. Centennial shall have the first
right to use such facility and Englewood shall have the right to use any excess capacity in the
facility . The availability of excess capacity shall be determined solely by Centennial.
Centennial shall maintain such facility. Englewood will operate such facility as directed by
Centennial to dive11 and/or pump Centennial's water through such facility, consistent with
Centennial 's rights to capacities in the City Ditch and the Englewood City Ditch Pump Station
under this Agreement.
17 . Capital Improvements to Nevada Ditch Facilities. Any improvements to Nevada
Ditch facilities by Centennial will be made in accordance with the Nevada Ditch Holding
Company bylaws and subject to Englewood 's prior approval of plans and specifications , which
approval will not be unreasonably wi thheld.
18 . Adjustment of Payments. The payments by Centennial to Englewood, as set
forth above in paragraphs 8.7 , 12.4, 13 .3.12 and 13.7 , shall be adjusted annually as of January 1
of each year in accordance with the following provisions . The adjusted payments shall be the
adjusted payments determined using the CPI Basis for adjustments , as hereinafter described ,
unless the Appraisal Basis for adjustments, as hereinafter described, is elected by one of the
parties .
18. 1 · CPI Basis for Adjustments . The CPI Basis for adjustment of payments
shall mean an adjustment of each of the payments set forth above either upward or downward in
proportion to changes in the Consumer Price Index, All Urban Consumers, Denver-Boulder-
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Greeley Area, All Items, as published by the U.S. Bureau of Labor Statistics (the Index). The
Index .is cun-ently published for the first half of each year and for the second half of each year.
The adjustment shall be made as follows: the initial Index shall be the Index for the second half
of 2002. Beginning with the year 2004, the payments shall be increased or reduced each year in
proportion to the change in the Index between the second half of the previous year and the
second half of the year prior to the previous year. It is acknowledged that the Index for the
second half of each year will not be available until after January of the subsequent year, and an
adjustment between the parties to con-ect the interim payments shall be made within 30 days
after the Index for the requisite second half of the year is published, and thereafter all payments
shall be made pursuant to the revisions necessitated by the newly-published Index. If the
described Index ceases to be published , the parties shall seek to agree upon a reasonable
substitute index; and if such agreement cannot be reached, the substitute index shall be the most
comparable and recognized cost of Jiving index then being published.
18.2 Appraisal Basis for Adjustments. The Appraisal Basis for adjustment of
payments shall mean an adjustment of each of the payments set forth above either upward or
downward to the appraised value of the water deliverable or the leasehold interest under the
terms of this Agreement. The Appraisal Basis for adjustment of payments shall be used no more
often than once every S years and only if one pai1y gives written notice to the other party of the
notifying party's desire to have an appraisal made of water value and/or leasehold value within
60 days after notice from one party to the other party of the adjusted payments for the ensuing
pe1iod as determined using the CPI Basis for adjustment. If such notice is given, the parties shall
promptly thereafter cause an appraisal to be made of the values of the water deliverable and/or
the leasehold interests under this Agreement. The appraisal shall be made by an appraiser or by
appraisers who are competent and recognized appraisers of the value of water and/or leasehold
interests and the fees and expenses of the appraisers shall be shared equally by the parties. The
parties shall seek to agree on a single appraiser. If the parties cannot agree within 30 days upon a
single appraiser, either party may designate a competent and recognized appraiser by notice to
the other party and the other party shall, within 30 days thereafter, designate a competent and
recognized appraiser by notice to the first party. Within 30 days after the designation of the
second appraiser, the two appraisers so designated shall select a third competent and recognized
appraiser. As soon as practicable after the designation of the single appraiser or of the three
appraisers, the single appraiser or the three appraisers shall submit to the parties appraisals of the
values of the water deliverable and/or the leasehold interests hereunder. If there is a single
appraiser agreed upon by the parties, the appraised values determined by that appraiser shall be
deemed the appraised values of the water and/or leasehold interests. If there are three appraisers,
the appraised values of water and/or leasehold interests hereunder shall be the appraised values
for any category of water and/or leasehold interests agreed upon by any two of the appraisers or,
if no two of the appraisers agree, the appraised values of water and/or leasehold interests
hereunder shall be the average of the appraised values for any category of water and/or leasehold
interests of each of the three appraisers. Pending completion of the appraisal, Centennial shall
make payments at the prices determined using the CPI Basis for adjustments. Upon completion
of the appraisal, Englewood shall refund amounts, if any , paid by Centennial in excess of the
payments determined using the Appraisal Basis for adjustments, or Centennial shall pay the
additional amounts , if any, due to Englewood under the payments determined using the
Appraisal Basis for adjustments .
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18.3 Instructions to Appraiser(s). The appraiser(s) is instructed to value the
following items on the basis of their fair market values. Fair market value, as used in this
Agreement, is defined to be the most probable price paid by a knowledgeable buyer to a
knowledgeable seller under conditions in which neither the buyer nor the seller is operating
under compulsion or duress, given a reasonable time for the transaction to be concluded.
18.3.1 Storage Capacity in McLellan Reservoir. The annual lease value
for the 15.15 percent of the storage capacity in McLellan Reservoir which is leased to Centennial
is to be valued at its fair market value for use for municipal purposes.
18.3.2 High-Priced Water. The appraiser(s) will calculate the lease price
per acre-foot of High-Priced Water using the following equation :
Lease Price for High-Priced Water= (Threshold x Value -Annual Lease Value for 900 Acre-
Feet of Storage in McLellan Reservoir)/Threshold.
Where:
"Threshold" is the maximum amount of High-Priced Water in the current year (i.e., at the time of
the appraisal) in acre-feet;
"Value" is the fair market lease or rental value in dollars per acre-foot for a highly dependable
municipal supply water supply; and
Annual Lease Value for 900 Acre-Feet of Storage in McLellan Reservoir is the current year's
payment under paragraph 13.3.11 , unless there is also an appraisal in the current year of the
annual lease value for storage capacity in McLellan Reservoir, in which event the Annual Lease
Value for such 900 acre-feet shall be the amount calculated using the unit value per acre-foot for
storage capacity in McLellan Reservoir as determined by the appraiser(s) for the current year
using the appraisal method described in paragraph 18.3.1.
18.3.3 Medium-P1iced Water. The appraiser(s) will determine the unit
value per acre-foot for Medium-Priced Water on the basis of its average availability over a
number of years, with the possibility of little or no availability in a single year.
18 .3.4 Low-Priced Water. The appraiser(s) will determine the unit value
per acre-foot for Low-Priced Water on the basis of its availability on a short term basis without
the ability to plan for its use more than a sho11 time in advance of its availability.
18.3.5 Reuse Rights . The appraiser(s) will determine the unit value per
acre-foot forthe reuse rights, if any , associated with High-Priced Water, Medium-Priced Water
and Low-Priced Water by (1) reviewing Englewood's decrees to determine which of
Englewood's water rights are reusable and (2) reviewing records of Englewood 's delivery of
reusable water to Centennial.
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18.3 .6 Paid Deliveries Water. The appraiser(s) will determine the value
of the Paid Deliveries Water as the sum of three components:
(1) the amount per acre-foot charged by Denver to Englewood,
pursuant to the 1995 Englewood/Cyprus/Denver Agreement; and
(2) the cost per acre-foot to Englewood of pumping such water from
City Ditch to McLellan Reservoir, if such water is pumped to McLellan
Reservoir, or the amount charged per acre-foot to Englewood by Denver
or by the Nevada Ditch Holding Company, if such water is delivered to
Centennial through the High Line Canal or the Nevada Ditch,
respectively; and
(3) a fixed charge per acre-foot to be paid by Centennial to
Englewood.
The appraiser(s) will only determine the value of item (3), above , i .e., the fixed charge per acre-
foot to be paid by Centennial to Englewood. The appraiser(s) will determine the unit value of
the fixed charge by considering the 1995 Englewood/Cyprus/Denver Agreement, records of
Denver's delivery to Englewood of the Paid Deliveries water, and the reuse rights associated
with the Paid Deliveries Water.
18.3.7 Lease of Facilities. The appraiser(s) will determine a single annual
lease value for the City Ditch Facilities and the Nevada Ditch by reviewing records of
Centennial's use of these facilities pursuant to this Agreement, and by recognizing the variable
nature of the availability of such facilit ies for use by Centennial.
19. Centennial Right of First Refusal to Purchase Ern!lewood Water Rights or Raw
Water Facilities. If, at any time during the term of this Agreement, Englewood desires to sell
any of its water rights or raw water facilities , including but not limited to those listed below,
Centennial shall have the right to purchase such water rights or raw water facilities on the same
terms and conditions as Englewood shall be willing to sell the same to any other party. The
foregoing shall not be construed to authorize Englewood to sell, or to require Centennial to
purchase any water rights or water facilities which are necessary or desirable to assure the
delivery of water as required under this Agreement , or to abrogate, limit or subordinate the rights
of Centennial under this Agreement if Centennial does not exercise its right of first refusal.
19.l Englewood Raw Water Facilities. The Englewood raw water facilities
that are subject to this paragraph 19 include , but are not limited to, McLellan Reservoir, City
Ditch , Englewood City Ditch Pump Station, McLellan Reservoir Discharge Facility, Bear Creek
Pipeline (from Clay Street to Englewood's river reservoir at Union Avenue intake), any
Englewood groundwater wells and appurtenant facilities intended to withdraw groundwater from
the Denver Basin , Nevada Ditch , future raw water transmission facility (from the vicinity of
Englewood's Union Avenue Intake or Allen Treatment Plan to the vicinity of McLellan
Reservoir).
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19 .2 Procedures. In the event Englewood desires to se ll any of its water rights
or raw water facilities , then Englewood shall deliver to Centennial notice of its desire to sell,
which shall include the following information:
A. The identity of the asset to be sold;
B . The price to be received, and the terms of payment of the price;
C. The state of title to th e asse t to be conveyed , including any liens or encumbrances;
and
D. Such other information or conditions of the sale, if any, which Englewood may
choose to include.
During a period of 60 days following the date of receipt of such notice,
Centennial may deliver to Englewood notice that Centennial will purchase the asset described in
Englewood 's notice on the price , term s and other conditions described in Englewood's notice. If
Centennial's notice is so delivered, then the parties shall close the purchase of the particular asset
at a time and place reasonably se lect ed by Englewood , no sooner than 60 or more than 90 days
after the date of deli very to Englewood of Centennial' s notice. Appropriate signed conveyance
instruments shall be delivered at closing, together with readily available purchase funds and any
note or other obligation for deferred pa yments .
If Centennial fails to deliver timely notice as above provided , then for a period of
548 days following the expiration of th e 60 day period for Centennial's notice , Englewood may
sell the asset for a price no Jess than 95 per cent of that stated in Englewood's notice to
Centennial, and upon terms no less favorable to Englewood than those stated in such notice . If
Englewood wishes to sell for a price which is Jess than 95 per cent of that stated in such notice to
Centennial, or on Jess favorable terms , then Englewood must recommence the notice process
described herein .
20. Mutual Cooperation. It is anticipated that Centennial and Englewood will work
together and use their best efforts to enter into further and ancillary agreements relating to the
construction , operation and maintenance of facilities which would enhance the availability and
quality of water for both Englewood and Centennial. However, such further or ancillary
agreements s hall be separate and distinct from this Agreement and this Agreement shall not be
conditioned in any way upon the entering into by either party of any such future or ancillary
agreements.
21. Reversion of Leased Water to Englewood. At any time during any year, by
mutual agreement, Centennial may return to Englewood water actually delivered by Englewood
to Centennial under this Agreement. Englewood shall pay to Centennial for the water returned to
Englewood th e same price which Centennial paid Englewood for s uch water. If the water so
returned to Englewood is reusable water, all rights of reuse shall also revert to Englewood .
22. Default and Remedies . If either party shall fail to keep or perform any agreement
on its part to be kept and performed according to the terms and provisions of this Agreement and
the other party gives notice specifying the particular default or defaults, the party in default shall
have such period of time as provided in said notice , which period of time shall in no event be less
P :\dianas\AGMTS \2003Wate rFacilitiesSupplyAgreement.doc
30
than 90 days, in which to coJTect such default or defaults, or institute action reasonably
calculated to correct such default or defaults. Due to the uniqueness of the subject matter of this
Agreement, the inadequacy of legal remedies, the extreme difficulty which may be experienced
in calculating damages, and the impossibility of returning the parties to the conditions that
existed at the time this Agreement was made, the non-defaulting party shall have the right to
specific performance as a remedy. Waiver or failure to give notice of a particular default or
defaults, shall not be construed as condoning any continuing or subsequent default. If either
party should contest any action pursuant to this paragraph in court , this Agreement shall remain
in effect pending a determination by the court in said action.
Notwithstanding the foregoing provisions of this paragraph 22, if either party fails
to pay a liquidated sum of money, then the other pai1y may give the defaulting party written
notice of the default, and if the default is not coJTected within 20 days after the date of receipt of
the notice , then the non-defaulting party may, at its election , terminate this Agreement by notice
delivered to the defaulting pai1y within 30 days after expiration of the 20 day period. A
liquidated sum means a sum which is fixed or can be readily calculated under this Agreement,
and as to which there is no dispute that the sum is due. An example would be a failure to pay a
fixed annual lease payment when there is no dispute that the amount is due.
The prevailing party on any claim of breach or default shall be entitled to recover
from the other party its reasonable attorneys fees, costs and other expenses related to the claim
on which it prevailed.
23. Notices. Except as otherwise expressly provided in paragraph 10.3.1, all notices,
consents or other instruments or communications provided for under this Agreement shall be in
writing, signed by the party giving the same, and shall be deemed properly given and received
when personally given and received, or three business days after mailing, if sent by registered or
certified United States mail, postage prepaid , addressed to a party at its address set forth below or
such other address as such party may designate by written notice to the other party:
To Englewood:
To Centennial:
Director of Utilities
City of Englewood
1000 Englewood Parkway
Englewood , CO 80110
General Manager
Centennial Water and Sanitation District
62 West Plaza Drive
Highlands Ranch , CO 80129
24 . Assignment by Either Party. Absent prior written consent by Englewood, which
may be withheld without cause, Centennial may not assign its rights or obligations hereunder
except to a successor entity which serves water only to the Centennial Service Area described in
paragraph 7 .1. Absent prior written consent by Centennial, which may be withheld without
cause , Englewood may not assign its rights or obligations hereunder provided, however, that
Englewood may assign to a governmental or quasi-governmental provider of water for municipal
P:l dianas\AGMTS\2003WaterFacilitiesSupplyAgreement.doc
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purposes which has sufficient financial strength and water resources to provide at least as much
water to Centennial as Englewood is reasonably likely to provide.
25. Binding Effect. The term s and provisions of this Agreement shall be binding
upon and inure to the benefit of the parties and their successors and assigns, provided any
assignments are made in accordance with paragraph 24.
26. No Third Party Benefici aries. None of the terms or provisions of this Agreement
shall be deemed to be for the benefit of any person or pa11y other than Centennial and
Englewood.
27. Entire Agreement. Thi s Agreement constitutes the entire understanding between
the parties with respect to the subject matter hereof and all prior agreements or understandings
shall be deemed merged herein . No representations, wan-anties or certifications, express or
implied, shall exist as between the partie s except as stated herein .
28. Modifications in Writing. No amendments, waivers, or modifications hereof shall
be made or deemed to have been made unless in writing executed by the party to be bound
thereby.
29. Severability. If any provi s ion of this Agreement shall be invalid, illegal or
unenforceable , it shall not affect or imp air the enforceability of any other provisions of this
Agreement. Englewood will vigorously defend any attack on the ability of Englewood to deliver
water under this Agreement to Centennial for use by Centennial, and will encourage Centennial
to join in the defense. Despite potential participation in the case by Centennial, Englewood shall
have the sole right to settle the litigation , but only after reasonable consultation with Centennial
and receipt and consideration of Centennial' s views on settlement. If an adverse judicial ruling
is received , or an adverse settlement i s made , with respect to the ability of Englewood to deliver
water derived from any Englewood water right or contract right pursuant to this Agreement to
Centennial for use by Centennial, then Englewood in its sole discretion shall determine whether
to attempt to amend any applicable Englewood decrees or contracts or take other steps to
ameliorate the impact of the adverse event. However, Englewood shall reasonably consult with
Centennial concerning its course of action , prior to reaching any final conclusion. If Englewood
decides not to take action to enable delivery to and use by Centennial under the disputed water
right or contract, then Englewood may provide the water in question to others, free of any of the
constraints established by this Agreement ; provided, however, that prior to making a final
decision to provide the water to others , Englewood shall reasonably apprise Centennial of the
terms , conditions and circumstances under which it will provide the water to others , and provide
Centennial with a 30 day period within which to propose a methodology whereby approximately
the same quantity of water could be provided in s tead to Centennial. Englewood shall be under
no obligation to accept such a methodology, but shall afford reasonable and careful consideration
to Centennial's proposal.
30. Applicable Law. This Agreement shall be interpreted and enforced according to
the laws of the State of Colorado.
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31 . Headings and Captions for Convenience. All headings and captions used in this
Agreement are for convenience only and are of no meaning in the interpretation or effect of this
Agreement.
32. Term and Renewals of Agreement.
32 .l Term of Agreement. The term of this Agreement shall include the Initial
Term and , if the renewal options hereinafter specified are exercised , the Renewal Terms, all as
hereinafter specified.
32.2 Initial Term . The "Initial Term " of this Agreement shall be 20 years
commencing January 1, 2003 and extending to midnight on December 31 , 2022.
32.3 Renewal Options. Centennial shall have the option to extend the Initial
Term of this Agreement for up to four additional successive 20-year periods . The First Renewal
Term shall commence on January 1, 2023 and extend until midnight on December 31, 2042. The
Second Renewal Term shall commence on January 1, 2043 and shall extend until midnight on
December 31 , 2062. The Third Renewal Term shall commence on January 1, and shall extend
until midnight on December 31 , 2082. The Fourth Renewal Term shall commence on January 1,
2083 and shall extend until midnight on December 31 , 2102 .
32.4 Proc edures for Renewal. Centennial shall exercise the options to renew
the term of this Agreement by giving Englewood notice of the exercise of the option at least one
year before the next Renewal Term is to commence. lt is recognized that , due to the long term
nature of this Agreement, there may be an inadvertent failure of Centennial to give timely notice
of Centennial's desire to extend the term of this Agreement. Accordingly, if Centennial fails to
give notice to Englewood of its desire to exercise any option to renew , Centennial shall, in any
event, be required to give such notice within 30 days after a notice from Englewood to
Centennial advising Centennial that Centennial has failed to give notice of its intent to exercise
its option to renew. If, through inadvertence or otherwise, neither party gives a notice , this
Agreement shall automatically continue on a year-to-year basis. If Englewood subsequently
gives notice and Centennial fails to exercise its option to renew within 30 days after such notice,
this Agreement shall expire on midnight of December 31 of the year in which such notice is
given by Englewood , provided such notice is given to Centennial at least 30 days prior to such
December 31 .
33. Condemnation. If either party commences an eminent domain proceeding to
acquire property of the other including , but not limited to , property in the name of or held by a
ditch company in which a party holds shares , then the condemnee or holder of the ditch company
shares may terminate all or any part of this Agreement at such time or times as the condemnee
chooses , by notice to the condemnor. The term "prope11y " includes , but is not limited to,
easements , rights of way, leaseholds, c aniage capacity in water conveyance facilities, storage
rights in reservoirs , water rights , rights to receive water, and other contractual rights.
34 . Counterpai1s . This Agreement may be executed in com1erparts, all of which
taken together shall constitute one and the same Agreement.
P :\dianas\AGMTS\2003WaterFacilitiesSupplyAgreement.doc
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IN WITNESS WHEREOF, this Agreement is executed to be effective as of the day and year
first above written.
CITY OF ENGLEWOOD
Mayor
Attest:
City Clerk
P:\dianas\AGMTS \2 00 3WaterFacilitiesSupplyAgreement.doc
34
CENTENNIAL WATER AND
SANIT A TJON DISTRICT
Chairman
Attest:
Water Supply and Facilities Agreement
Exhibit "A"
Payments Due from Centennial to Englewood
\Vater SuppJy and FaciJities Agreement
Exhibit "B"
Outsjde Cjty of EngJewood Water Servjce Areas
The City of Englewood serves treated water to the following areas outside of its
municipal boundaries:
The Cherryhills Rancho area , roughly bounded by S. Lafayette Street extended on
the east to S . Clarkson St. on the west , and U.S. Highway 285 on the north to E.
Oxford Lane on the south: 68 accounts,
Along S. Clarkson Street from E. Quincy Ave. south to E. Belleview Ave.: 16
accounts ,
E. Radcliff Ave. east of S. Clarkson St.: one account,
E . Stanford Ave . east of S. Clarkson St.: 5 accounts,
E. Tufts Ave. east of S . Clarkson St.: one account,
Viking Drive east of S . Clarkson St.: 15 accounts , and
Centennial Acres bounded by W . Belleview Ave. on the north, W. Berry Ave. on
the south, S. Irving St. on the east and S. Lowell Blvd. on the west: 307 accounts.
The total count for outside city accounts is 413.
l ~ ',
.. 1 J) :·
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·. , ,.-, , ;r 't; , ,
,· . .._,,j 1,r ';,,>Ill.\ .-_,.~,.~"·~-
' r:~-, ~·.··~ : '·ls~; ,~~>;:-,,hi~ f ~
l\. '. ' .. ,;; 'l :. ! ! I'< J -.,.::;t .•• ~ . ~
1 );I ,;.:: ·' l ,
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3,500 7 ,000
N W+E
s
Legend
1222] Area to be Served by Englewood Water
Area to be Served by Englewood Water
0
Fe et
Year
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
Water Supply and Facilities Agreement
Exhibit D
Example Calculation
Values in These Columns Computed in Ja nuary of the Current Year, Based on Previous Values These Col umns May Not be Known Until End of Year
Ann ual En d of Year End of Year End of Year
10 year 10 yea r Threshold Threshold Reduce Increase Contract High Priced Medium Priced Low Priced
Mi nimum Average Sum Buffer Amount Threshold Th res hold Threshold Wate r Water Water Water
1500
NOT ES All Values in Acre Feet 1500
1500
Years 2003 through 2015 are assumed to be the Threshold Initiation Period . For these years, 1500
the threshold is set by agreement, not calculation, assuming annual contract water in each 1500
of these years equals or exceeds contract amounts. 1500
1500
1500
1500
1500
1500 1500 1500 0 0 0 1600 2000 1600 0 400
1500 1550 2000 400 0 0 1700 2200 1700 0 500
1500 1620 2600 900 0 0 1800 2500 1800 0 700
1500 1720 3400 900 0 0 1800 2700 1800 0 900
1500 1840 3600 900 0 0 1800 2600 1800 40 760
1500 1950 3500 900 0 0 1800 2500 1800 150 550
1500 2050 3400 900 0 0 1800 2600 1800 250 550
1500 2160 3500 900 0 0 1800 2400 1800 360 240
1500 2250 3300 900 0 0 1800 2500 1800 450 250
1500 2350 3400 900 0 0 1800 2800 1800 550 450
2000 2480 3700 900 0 0 1800 2600 1800 680 120
2200 2540 3500 900 0 0 1800 2700 1800 740 160
2400 2590 3600 900 0 0 1800 2700 1800 790 110
2400 2610 3600 900 0 600 2400 2500 2400 100 0
2400 2590 3400 900 0 0 2400 2500 2400 100 0
2400 2580 3400 900 0 0 2400 1200 1200 0 0
1200 2450 2100 0 (300) 0 2100 800 800 0 0
800 2270 800 0 (1300) 0 800 100 100 0 0
100 2040 100 0 (700) 0 100 800 100 700 0
100 1870 800 700 0 0 100 1100 100 1000 0
100 1700 1800 900 0 0 100 1300 100 1200 0
100 1570 2200 900 0 0 100 1400 100 1300 0
100 1440 2300 900 0 0 100 1600 100 1340 160
100 1330 2500 900 0 0 100 1400 100 1230 70
100 1220 2300 900 0 0 100 1300 100 1120 80
100 1100 2200 900 0 0 100 1800 100 1000 700
100 1160 2700 900 0 0 100 2000 100 1060 840
100 1280 2900 900 0 0 100 2200 100 1180 920
800 1490 3100 900 0 700 800 2100 800 690 610
1100 1620 3000 900 0 300 1100 1800 1100 520 180
1300 1690 2700 900 0 200 1300 2600 1300 390 910
1300 1820 3500 900 0 0 1300 2700 1300 520 880
1300 1950 3600 900 0 0 1300 2500 1300 650 550
1300 2040 3400 900 0 0 1300 2600 1300 740 560
1300 2160 3500 900 0 0 1300 2700 1300 860 540
1800 2300 3600 900 0 500 1800 2800 1800 500 500
1800 2400 3700 900 0 0 1800 2500 1800 600 100
""'
<.-{
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/
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Water Delivery Measurement Points
1. City Ditch Pump Station: Meter on discharge piping
I ,".i l 1· .. , ~·¥. ,,
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N
2 . Nevada Ditch Flume: Flume between turnout structure off ditch and So. Platte Res . pump station forebay W+E 3. Last Chance Ditch Flume: Flume between turnout structure off ditch and So. Platte Res .
s
0 1,000 2,000
4 . Dad Clark Gulch Flume : Dad Clark Gulch downstream from Highline Canal turnout structure
5. Dad Clark Gulch Meter: Meter installed in 36" pipe under Highway C-470
6 . Highline Canal Gate No. 29 + 427' Feet
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Water Supply and Facilities Agreement
Exhibit F
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Centennial's Pipelines
Englewood's Pipelines
City Ditch
Last Chance Ditch
Nevada Ditch
Dad Clark Gulch
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General Features
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Joseph B. Blake
Water Treatment Plant
N W+E
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0 1,000 -
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Water Supply and Facilities Agreement
Exhibit "G"
1995 Englewood/Cyprus/Denver Agreement Paragraph 3.3.5
1 J A v .i l;f
SETTLEMENT AGREEMENT
This Agreement made and entered into this//:!._,, day of ~ 1995, ·by
and ·between the CITY AN_D COlT.NTY OF DENVER, acting by · and through
its BOARD OF WATER COMMISSIONERS ("Denver"), THE CITY OF
ENGLEWOOD ("Englewood") , and CYPRUS CLIMAX METALS COMPANY r
("Cyprus") (collectively, the "parties"),
WITNESSETH:
WHEREAS, the ·City of Englewood owns water rights decreed in
C.A. 657 and Case No. W-750-78 ("Cabin-Meadow Creek Water
Rights'') which divert from tributaries of the Fraser River in
Water Division Number 5 for municipal use; and
WHEREAS, Denver owns and operates a water collection system
which diverts water under its water rights from the Fraser and
Williams Fork River basins for municipal use; and
WHEREAS, Cyprus, through its wholly-owned subsidiary, Climax
Molybdenum Company, ~wns and operates the Henderson Ore Reduction
Plant ("Hendersori Mill") located in the Williams Fork valley,
which processes ore from the Henderson Mine. Cyprus .needs a firm
water supply to insure its ability to process ore at maximum
production capacity during periods of drought; and
WHEREAS, Denver and Englewood entered into a Water Exchange
Agreement dated March 17, 1964 ("1964 Water Exchange Agreement''),
and Denver, Englewood and Cyprus entered into a Modification of
the Water Exchange Agreement dated September 2, 1969 ("1969
Modification"), under which Denver carries Cabin-Meadow Creek
system water through its water system and delivers, by trade or
exchange, water to Englewood on the South Platte River for
municipal use within the Englewood Service Area, and also
operates its Williams F.ork System to provide water to Cyprus on
the Williams Fork River for use in the Henderson Mill.
Englewood, Cyprus and Denver agreed to share the yield of water
produced by the Cabin-Meadow Creek Water Rights; and
WHEREAS, Englewood and Cyprus entered into an agreement
dated September 25, 1969, as amended on September 26, 1969,
whereby Englewood and Cyprus agreed to jointly develop the Cabin
Meadow Creek Water Rights and to share all costs connected W·i th
the development, operation and maintenance of the Cabin Meadow
Creek System; and
WHEREAS, Englewood developed with Cyprus' assistance a
collection system ("Cabin-Meadow Creek System") by which to
divert and carry water diverted under the Cabin-Meadow Creek
Water Rights; and
Denver's ciecrees. When water from Reusable Sources is
physically ~vailable at the time of deli very, Denver shal J
ae11 ver sucn water. If these Reusable Sources are not
available, Denver sha ll deliver from storage other.municipally
ciecreed sources available to Denver. The determination of
which storage sources are available is within the sole
discretion of Denver. Nothing in this Agreement shall be
construed a~ creating any obligation on Denver to have
Reusable Sources in its system or requirin~ Denver to operate
the Roberts Tunne l i n any manner.
3 .3.~ No carr v -ov er. Englewood must take Pa i ci
De li veries before J ul y j of the y ear of designa~ion.
Eng l ewood shal l for f eit an y Paici De l iveries designateci anci
made ava il able by Denver but not ta ken before July l . An y
forfeiteci Paid Deliver i es shal l be retained b y Denver for its
sole and exc l usive use. Eng l ewood is no t required to pay for
uncielivered Paici De l iveries; however, a ll Paic Deliveries
designated b y Den v er count aoa i nst the amounts set forth ir.
3. 3 .1.
3.3.: Denver Operation of CMC Exchanaes. Denver may
operate in-priority exchanges under the decrees in C.A. 3635,
case No. W-8783-77 or Case No. W-8456-7 6 ("Exchange Decrees")
using water introduced into the South Platte River Basin froffi
Englewood's CMC Water Rights or Denver's water rights decreec
from the same sources tc the Moffat Tunnel Collection Systerr.
in C.A. 1430 ("CMC Exchanges"). CMC Exchanges may be
performed by Denver only between May l and August 31, and may
be performed only when calls are being administered for senior
water rights of others on the South Platte River below the
point (s ) at which CMC Exchange water is delivered into the
south Platte River mainstem to satisfy the calling water right
or to otherwise satisfy senior downstream water rights.
Denver's diversions and storage from the South Platte River
under CMC Exchanges shall be limited to the lesser of (a) 95
cf s or (b) the amount of water called for by downstream senior
rights on the South Platte mainstem during operation of the
CMC Exchanges. Under the Exchange Decrees, any CMC Exchanges
tc Chatfield Reservoir shall be operated under an
administrative date of 1976 or 1977 and to Strontia Springs
Reservoir under a priority of 1962.
Englewood, and any entity who is entitled to receive the Paid
Deliveries pursuant to a written contract with Englewood
specifically for use of the Paid Deliveries ("Contract Users
of Paid Deliveries"), shall not object in any forum or manner
to operation of CMC Exchanges by Denver in accordance with
this Agreement. For purposes of this paragraph 3.3.5,
Centennial Water and Sanitation District ("Centennial") under
the 1977 Lease Agreement or 1980 Water Supply Agreement, shall
not be considered a Contract User of Paid Deliveries unless it
8
314 44
is entitled under an amendment or new agreement to receive alJ
Paid Deliveries. Before any entity including Centennial is
made a Contract User of Paid Deliveries that entity must agree
to abide by this paragraph 3.3.5.
3.4 Schedule of deliveries. Denver shall make Basic and Paid
Deliveries uncier the procedures set forth in Exhibit A. Denver
shalJ only make available Paid Deliveries during the period May J
throuch June 30 under the procedures set forth . in Exhibit A.
Engle~ood is solely responsible for coordinating any Basic and Paid
Del iv eries to its lessees or users . Englewood shall not request
Basic or Paid Deliveries if the water is not neecied for municipa l
purposes by it or its lessees or users.
3.= Point of Delivery . Water designated by Denver under this
Article Il l shall be measured and delivereci into the South Platte
River into or below either Strontia Springs Reservoir or Chatfield
Reservoir , at Englewood's request. Stream or ditch carriaqe
.i os ses, if any, between the point of deli very and any other
downstream points of diversion are to be absorbed by Englewood.
3.6 Type of Water. Water delivered to Englewood under this
Article Ill shall be decreed for municipal use and shall be
lawfully available for storage. Denver may deliver to Englewood
water decreed either for direct flow or for use by exchange onl y
with Englewood's consent. Except as described in this Section 3.6,
however, Englewood takes the type of water "as is" with respect to
Denver's decrees. Nothing in this Agreement shall be construed to
require Denver to change its decrees.
3. 7 Use of Delivered Water. Water delivered to Englewood
shall be used only for municipal purposes within the Denver
metropolitan area and shall be used consistently with Denver's
decrees.
Article IV
Cyprus-Denver Provisions
4.J Cabin-Meadow Creek water. Denver shall have the right to
use, reuse, successively use and dispose of all waters produced by
the CMC Water Rights and CMC System for any municipal use by
Denver 's customers in the Denver metropolitan area consistent with
the Decree entered in Case No. W-750-78.
4. 2 Amount of Water Provided to the Henderson Mill. While
the Henderson Mine is in operation, Denver's Williams Fork System
shall be exercised so as to provide up to 3,000 acre feet of water
from the Williams Fork River and its tributaries for diversion and
use at the Henderson Mill (the "Cyprus Credit"); provided that no
more frequently than once during any ten consecutive Water Years,
Denver may, by Apr±l 20 of the Water Year, notify Cyprus that only
9
conditions that existed at the time of this Agreement, the non-
defaulting party(ies) shal l have the right to specific performance
as a remedy. Waiver or failure to give notice of a particular
default or defaults under this Section shall not be construed as
condoning any continuing or subsequent default.
8 .18 Term. This Agreement is perpetual, except for the
provisions concerning ·Cyprus which shall terminate when the
Henderson Mine ceases operat ion under Article II.
ATTEST:
APPROVED:
Lega~nS '.f~ \_
ATTEST:
;1..,'T. Secretary
26
CITY AND COUNTY OF DENVER
acting by and through its BOARD
OF WATER COMMISSIONERS
By:~;:U
Pr esident
REGISTERED AND COqNT~RSIGNED
Donald J. Mare.s ,. Au9 ·i tor /, L t /,~
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CYPRUS CLIMAX METALS COMPANY
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Water Supply and Facilities Agreement
Exhibit H
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Englewood Physical Facilities in Which Capacity is Leased to Centennial
fZ'/Z/l Mclellan Reservoir
City Ditch from Chatfield Reservoir Ditch Outlet Manifold downstream to the City Ditch Pump Station
Nevada Ditch from Chatfield Reservoir Ditch Outlet Manifold downstream to the turnout structure on
the ditch at which water is delivered to Centennial
Pipeline from Mclellan Reservoir to the Discharge Facilitiy, which is used both to carry water from the
City Ditch Pump Station to Mclellan Reservoir and from Mclellan Reservoir to the Discharge Facility
@ City Ditch Pump Station
8J Mclellan Reservoir Discharge Facility
0
N W+E
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1,000 2 ,000
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Feet
Water Supply and Facilities Agreement
Exhibit "I"
Agreement between Englewood and Denver dated October 3, 1995
CITY DITCE/HIGB LINE CANAL AGREEMENT
THIS AGREEMENT is made and entered into as of the~ day 0~1
1995, by and between the City and County of Denver, acting by and
through its Board of Water Commissioners, a municipal corporation of
the State of Colorado ("Denv er"), and the City of Englewood, a
municipal corporation of the State of Colorado ("Englewood").
Recitals
A. Englewood and Denver wish to arrange for delivery of water
to each of them from a ditch owned by the other. Englewood desires
deliveries from the High Lin e Canal, and Denver desires deliveries
from the City Ditch.
B. The High Line Canal ("High Line") is owned and operated by
Denver. An outlet from the High Line is used by Englewood to supply
water to Mclellan Reservoir.
c. Englewood owns and operates the City Ditch from Chatfield
Reservoir north to Harvard Gulch blow-off. Denver owns the City
Ditch from Harvard Gulch north to its terminus. Englewood uses City
Ditch to convey water for Englewood's use to Mclellan Reservoir and
Allen Filter Plant, and also to supply various contract users who ·
divert from City Ditch south of Harvard Gulch. Denver uses
deiiveries from City Ditch to supply water to parks and to contract
users below Harvard Gulch.
D. Denver's rights to deliveries from City Ditch at Harvard
Gulch and Englewood's rights to deliveries from the High Line are
contained in a series of contracts, but are due to expire on November
1, 1998. Denver and Englewood desire to extend the term of their
respective rights to deliveries from City Ditch and the High Line.
Therefore, the parties have agreed ~as follows:
I. HIGH LINE CANAL
1.1 Deliveries to Englewood. Whenever Denver is running water
in the High Line at least as far as the turnout to McLellan
Reservoir, Denver shall divert at the High Line diversion dam not
less than 5 cubic feet per second (cfs) and up to 60 cfs of
Englewood's water. Englewood shall determine the amourit of its water
to be diverted, up to a maximum of 60 cfs. Denver shall continue to
operate the High Line for deliveries to contract users north of
McLellan Reservoir under the 1879 High Line priority.
1.2 Notice. Denver shall give Englewood reasonable advance
notice of the time when Denver will begin running water through the
Hioh Line. When Denver notifies Englewood that water is running in
the ~igh Line, Englewood shall give Denver 48 hours advance notice of
the amount of its water to be diverted, including rate and duration
of flow. Denver shall make all reasonable and practical efforts to
comply with Englewood's directions concerning commencement time, rate
and duration of flow. Denver has the right to terminate diversions
of Englewood's water, so long as all diversions of water into the
Hioh Line are terminated at the same time.
1.3 Measurement and Ditch Loss. Englewood shall bear a ditch
loss of 16 per cent (16%) of its water, diverted at the High Line
diversion dam, as measured at the gage adjacent to Platte Canyon
Reservoir, for delivery to McLellan Reservoir. The deliveries of
Englewood's water will be measured at the gage on Dad Clark Gulch
between the High Line and McLellan Reservoir. for example, if 60 cfs
is diverted for Englewood at the diversion dam, 50.4 cfs shall be
delivered through the Dad Clark gage. In the event that any
improvements are made to the High Line which decrease its seepage
losses, the amount of ditch loss which Englewood must bear shall be
appropriately reduced.
1.4 Waiver by Denver of Ditch losses. Notwithstanding
paragraph 1.3, Denver shall, to the extent legally permissible, waive
the 16% carriage loss when Denver is carrying Englewood's water in
the High Line along with water diverted by the High Line 1879
priority; provided that, Denver is not prohibited, for reasons beyond·
its control, from constructing the improvements proposed in paragraph
2.1.2. Englewood shall continue to bear the 16% carriage loss
whenever Denver is not diverting under the 1879 High Line priority
(i.e. the Antero Contract Run). Whenever the 16% carriage loss is
waived, Denver's maximum diversion and delivery rate for Englewood
shall be reduced from 60 cfs to 50 cfs.
1.5 Water Quality. Denver makes no warranty as to the quality
of the water delivered to Englewood, and Englewood will accept same
"as is".
1.6 Maintenance Responsibility. Denver shall operate and
maintain the High Line for delivery of Englewood's water to McLellan
Reservoir. Englewood shall pay a proportionate share of operation
and maintenance costs as described in paragraph 1.7. Englewood shall
maintain the present measuring flume at the McLellan Reservoir
turnout, at Englewood's sole expense.
1.6.l Shut-off of deliveries. Denver shall perform any
maintenance work requiring either a complete or partial shut-off
of deliveries in the High Line with the utmost expediency to
minimize water losses. Except in emergency situations, Denver
shall notify Englewood of all complete or partial shutoff at
least 48 hours in advance.
1.6.2 Annual Inspection. Representatives of Englewood and
2
Denver will perform annual Joint inspections of the High Line to
determine maintenance work required to continue to deliver the
rates of flow set forth above. The inspection of the High Line
will be limited to the reach between the South Platte River
diversion dam and the McLellan Reservoir turnout. The annual
inspection shall be made so that all required maintenance work
will be completed, to the extent practical, prior to April 1.
1 .7 Enalewood's Share of Hiah Line Expenses. Englewood shall
pay a proportional share of the Board's annual High Line
administration, operation and maintenanc e expenses(includina
depreciation ) on that portion of the canal from and including the
Hiah Line diversion dam to McLellan Reserv oir (a distance of 16
miles, more o r less). Denver will not ch arge Englewood for High Line
capital costs, d efined as the construction of new physical structures
o r :mcrcvements to existing structures th at will have a useful life
of fi~e ye ars or more(except for deprecia tion which shall be included
in operation and maintenance expense s and calculated under generally
accepted accounting procedures consistently applied). Englewood's
proportional share of those costs shall be based on the ratio of the
volume of water diverted for Eng lewood at the High Line diversion dam
to the total amount of water diverted by the High Line from the South
Platte River.
1.7 .l Calculation. The computation of Englewood's share
of costs shall be in accordance with the following formula:
CE = ( 16/ 63. 6) x CH x ( QE/QH) .
Where:
16
63.6
QH
=
CH =
Length of the High Line in miles from the High
Line diversion dam to the turnout for McLellan
Reservoir on Dad Clark Gulch.
Length of High Line in miles from High Line
diversion dam to its terminus at the Rocky
Mounta i n Arsenal turnout. This distance may
change in the future~depending on Denver's
operat i ons.
Total an nual High Line diversion, in acre-feet as
measured at the gage adjacent to Platte Canyon
Reservoir.
Total annual amount of Englewood water diverted
or delivered into the High Line, in acre-feet, as
measured at the gage adjacent to Platte Canyon
Reservoir.
The Board's total annual costs for
3
CE
administration, operation and maintenance of the
High Line (based upon actual miles operated by
Denver) .
Englewood's proportional sh.are of annual High
Line costs.
II. CITY DITCH
2.1 Deliveries to Denver.
2.1 .l Basic Deliver y . During the period of April l
throuah October 31, inclusive, Englewood shall deliver to Denver
through the Ci ty Ditch at Denver's request up to 10 cfs of water
at Harvard Gul ch (measured at the Washington Park flwne) ("Basic
Deliver y ").
2.1.2 Enlaroement of Basic Delivery. Upon replacement by
Denver of approximately 100 lineal feet of 36 inch diameter
corrugated metal pipe conveying City Ditch water between the
street and alleyway adjacent to the residence at 3018 S. Grant
Street, Englewood, Englewood shall deliver, at Denver's request,
up to 13 cfs to Harvard Gulch, but no sooner than April 1, 1997.
Denver shall also be responsible for improvernents,if any, to the
City Ditch north of and including Hampden Avenue to enable the
delivery of 13 cfs to Harvard Gulch. Englewood shall be
responsible for any maintenance activities necessary to convey
the 13 cfs to Harvard Gulch. All surveys, engineering and other
studies, and construction in connection with any improvements
shall be performed at Denver's sole expense. Englewood shall
cooperate f~lly in allowing any necessary investigations and
construction. No such construction, however, shall be performed
without the prior written consent of Englewood, which shall not
be unreasonably withheld. Denver shall comply with Englewood's
reasonable design standards or criteria in making these
improvements. After satisfactory completion of such replacement
and improvements, Englewood shall deliver 13 cfs to Denver at
Harvard Gulch, from April l through October 31 of each .year.
Denver will allow Englewood until April 1 1997 to perform
maintenance activities(including the removal of silt or debris)
necessary to deliver the 13 cfs.
2.1.3 Location of Other Deliveries. Denver may require
Englewood to deliver, through the City Ditch, any portion of the
13 cfs otherwise deliverable at Harvard Gulch to any existing
delivery structure or structures south of Harvard Gulch for
irrigation of parks, open space, and golf courses of Denver or
its customers. Such deliveries shall be in addition to the
deliveries which Englewood is already required to make to
existino contract users south of Harvard Gulch. If Denver
wishes ~o ·utilize new delivery structures, Denver shall pay to
4
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Englewood the full cost of the construction of the new delivery
structures. Englew ood shall perform the constructic~ ~~=~~;
periods when no interruption of flow will be necessary.
2.1.4 Interruption of Deliveries. In "emergency
situations," Englewood may temporarily reduce or eliminate the
deliveries of 10 cfs or 13 cfs pursuant to paragraph 2.1.1 or
2.1.2, respectively to Denver at Harva rd Gulch (o r south ), so as
to increase the f lo w in City Ditch available for diversion into
Englewood's All en Filter plant. P...n "emergency situation" is
defined as a casualty, such as an accident, mechanical
breakdown, burst pipe, flood , pr esence of a harmful · pollutant
which is a threat to the he alth and safety of Englewood's
residents, earthquake, fire or winds to rm, which causes Englewood
to be unable to make full use of its points of diversion from
the South Platte River or Bear Creek , other than City Ditch. In
the event of an interruption due to an emergency situation,
Enolewood shall take all reasonable and practical actions to
enable it promptly to resume full deliv eries to Harvard Gulch or
such other location as Denv er may desire. If the reduction or
elimination of deliveries at Harvard Gulth (the reduction) lasts
for less than 24 hours, Englewood shall not owe Denver any
compensation. For any period of reduction in excess of 24
hours, Englewood shall pay Denver for the amount of water not
delivered due to the in terruption to the extent the interruption
lasts more than 24 hours. For example, in event of a
interruption that lasts 30 hours, Englewood would owe Denver for
the amount of water not delivered for the last six hours.
Englewood shall pay Denver for such water at Denver's lowest
then current Outside City raw water rate when the interruption
occurs.
2.1.5 Interruption for Maintenance. Englewood shall
perform any maintenance work requir i ng either a complete or
partial shut-off of deliveries in c_i..ty Ditch with the utmost
expediency to minimize water losses. Englewood shall, except in
emergency situations, notify Denver of all complete or partial
shutoff at least 48 hours in advance.
2.1.6 Water Quality . Englewood makes no warranty as to
the quality of the water delivered to Denver, and Denver will
accept same "as is".
2.2 Enolewood's Oo erational Responsibility. Englewood shall
continue to operate and maintain City Ditch from the Chatfield
Reservoir outlet wo rks to the Harvard Gulch blow-off. Englewood
shall provide water to meet Denver's delivery obligations to the
present contract users on City Ditch south of Harvard Gulch, but such
deliveries shall not be in excess of the contract rights to water
which may be diverted und er Denver's Cit y Ditch priorities.
2.2.1 Annual Inspection. Representatives of Englewood
5
and Denver will perform annual joint inspections of City Ditch
to determine maintenance work required to continue to deliver
the rates of flow set forth above. The inspection will be
limited to the reach between the valve at the end of the Corps'
Chatfield Dam outlet manifold and piping system and Harvard
Gulch. The annual inspection shall be made so that all required
maintenance work wil l be completed, to the extent practical,
prior to April l .
2 .2.2 Littleton Cemetery. Englewood accepts full
responsibility for performance of Denver's obligations under
that certain agreement b etween Denver and the Littleton Cemeter y
Association dated May 13 , 1933, attached hereto and marked
"Exhibit E", so as to relieve Denver of any liability with
respect theretc. Denver has assigned all i ts rights and
obl i ~ati on s un d e r t h a t a gre ement to En g l ewood.
L.~ Denver's Oo era t i on al Responsibil i t y . Denver shall continue
to operate and maintain City Ditch north of Harvard Gulch, and shall
maintain the Harvard Gulch blow-off SLructure at Denver's sole
expense. Denver shall be solely responsible for supplying all
contract users who divert from City Ditch north of Harvard Gulch from
the 10 or 13 cfs to be provided hereunder. Englewood shall have no
responsibility for operation or maintenance of City Ditch north of
Harvard Gulch.
2.4 Fees Charqed to Contract Users. Englewood will be
responsible for charging fees to contract users who divert south o f
Harvard Gulch, including establishing fees, billing, and receiving
and retaining payments. Englewood will maintain normal business
facilities and records for such collections, and annually advise
Denver of payment or non-payment. Denver will set fees, bill,
receive and retain payment from contract users who divert north of
Harvard Gulch.
2.5 Riaht of Reversion or Acauisition. Denver retains the
right of reversion as to any contractual right for which an annual
service charge is not paid by May 21 of any year. Denver also
retains the right to acquire any contractual right in the City Ditch.
Except as to those contracts that take water north of Harvard Gulch,
any such reversion or acquisition shall increase the amount of water
which Englewood is obligated to deliver to Denver; provided that,
Denver reimburses Englewood as provided in paragraph 2.6; and
provided further, Denver is responsible for any improvements to the
City Ditch required to con v ey such water north of the turnout of the
contract users which Denver acquires by purchase or reversion. If
Denver acquires contract inches which now divert south of Allen
filter Plant for delivery north of the filter plant, then Denver will
make such improvements, if necessary, to prevent the diminution of
the existing capacity (25cfs) to Englewood.
2.6 Denver's Share of City Ditch Expenses.
6
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2.6.l Reimbursable Expenses. Denver shall pay a portion
of the annual administration, operation, and maintenance
expenses (including depreciation l ("City Ditch Costs") for the
City Ditch incurred by Englewood when Englewood delivers water
under the City Ditch Water Rights for use by Denver. The City
Ditch Water Rights are those rights decreed to the City Ditch
(a.k.a., Platte Water Company's Ditch) as evidenced by decree of
the District Court of Douglas County, adjudicating water rights
c.n f o rmer Water Distr i ct No. 8, entered or. December 10, 1883.
The City Ditch Costs shall exclude any and all costs associated
with the pump station located on the City Ditch which delivers
water from the City Ditch to McLellan Reservoir ("McLellan Pump
Station") and costs associated with any expansion or
improvements of the existing turnout from the City Ditch which
delivers water to Englewood's Allen filter Plant. The City
D ~tch Costs are to be d etermined b y the sum of the following:
A) operation expenses from April through October,
i nclusive, and maintenance expenses that occur throughout the
vear for that part of the City Ditch north of the McLellan Pump
Station multiplied by the ratio of the annual volume of water
diverted under the City Ditch Water Rights divided by the total
of the annual volume of water diverted under the City Ditch
Water Rights plus the annual volume of all other water Englewood
may deliver to the Allen filter Plant north of the McLellan Pump
Station; plus
BJ sixty percent (60%) of the operation and maintenance
expenses from April through October, inclusive, for the part of
the City Ditch south of the McLellan Pump Station; plus
CJ sixty percent (60%) of only the maintenance expenses
from November through March, inclusive, for that part of the
City Ditch south of the McLellan Pump Station. ·
The 60% represents the percentage of the current capacity
(58cfs) of the riped portion of the City Ditch between Chatfield
outlet manifold and the McLellan Pump Station that the former
open ditch could carry through this_,.reach (35cfs).
Denver's portion of the City Ditch Costs shall be determined by
taking the City Ditch Costs calculated as described above and
rnul tiplied by sixty one percent ( 61%) . This factor shall remain
constant even after Denver makes improvements to the City Ditch
conduit pursuant to paragraph 2.1.2. and increases its right to
receive water thereby; provided however, that should Denver
succeed to the rights of any present contract users south of
Harvard Gulch, Denver shall pay six (6) percent of total City
Ditch Costs for each one cubic feet per second of water to which
Denver succeeds (fractions of a cfs to which Denver succeeds
shall be prorated). An example of a calculation of the City
Ditch Costs is depicted in Exh1b1t A .
..,
I
2.6.2 Cacital Costs. Enalewood shal l not charge Denver
for City Dit c h capital co itsie~cept for depreciation which shall
be included in operation and maintenance expenses and calculated
under generally accepted accounting procedures consistently
applied). Capital costs are the costs for construction of any
new physical structure or improvements t o existing structures
that will have a useful li fe of five years or more. The U.S.
Army Corps of Engineers (Corps ) do es not presently charge
Englewood for costs associat ed with the right-of-way for
carriage of City Ditch wat er through the Co rps' Chatfield
Reservoir facilities. Any future costs assessed by the Corps
shall be conside red an op erat ions and maintenance expense which
can be charged to Denver under paragraph 2 .6.1.
2.7 Water Richts. ~~glewood ~111 divert on Denver 's City Ditc~
prioriti es i~ order to obtain the amount of water necessary for the
deliv eries to Denver and to the contr act u sers oth er than Denver or
Eng le wood. Denver shall not con test Englewood's claim of ownership
by contract or o therwise to divert up to 3 .21 cfs under the senior
priority of 30 cfs decreed to City Ditch with an appropriation and
priority date of November 28, 1860, as evidenced by decree of the
District Court of Douglas Coun ty, adjudicating water rights in former
Water District 8, entered on December 10, 1883. Englewood has the
reversionary right as the co-carrier only to its City Ditch contracts
up to 3.21 cfs. Denver does not warrant title to or . the legal or
physical availability of the 3 .21 cfs claimed by Englewood.
2.8 Use of Impaired Capacity. To whatever extent the carrying
capacity of the ditch is impaired for reasons beyond the control of
Englewood and until the ditch can be restored by reasonable
dilioence, then the deliver y rate below the obstruction shall be
based upon each party's pro-rata deliveries of City Ditch water
under this Agreement. If the i mpaired capacit y is due to failure to
adequately maintain the City Di tch south of Harvard Gulch (such as
removal of silt or removal of debris), then Denver's rights to
delivery up to 13 cfs shall be paramount and Englewood's rights to
its water secondary until the ditch is restored.
2.9 Use of City Ditch Excess Capacity. If Englewood determines
the City Ditch has excess capacity, then Englewood will deliver
Denver's remaining City Ditch entitlement; provided that such
deli ve ries do not interfere with Englewood's prior obligations or
interfere wit h i ts(or its lessee's) present or fu ture use of the Cit y
Ditch.
2.10 Storm Drainage into City Ditch. Water in excess of the
needs of the users from the City Ditch ("excess water") will be
dumped as follows: All excess water introduced or collected in City
Ditch south of the turnout in to Little Dry Creek will be dumped into
Little Dry Creek. Excess water introduced or collected in City Ditcf.
north of the turnout into Little Dry Creek will be dumped at the
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Harvard Gulch blow-off in t o Denver's storm drainage system.
Englewood may not redesign, reconstruct, modify or change City Ditch
s o as to increase the amount of storm drainage water that presently
collects in and is carried by City Ditch between Little Dry Creek and
Harvard Gulch without the prior written consent of Denver. Any
rnodif ication, replacement or reconstruction of the existing dump
facilities or construction of new dump facilities at Harvard Gulch
shall be performed in accordance with plans and specifications
prepared by an eng i neer accepted b y Englewo od and Denver as qualified
and competent.
III. MISCELLANEOUS PROVISIONS
3 .1 Cal cu lat ion c f th e .2-..111o c;::: cf £:·men ses I n curred with Resoect
to City Ditch and Hiah Line. Denver and Englewood's expenses
h ereunder shal l consist of direct l abor, materials, equipment,
v ehicles, and overhead(administration, tools, benefits and leaves)
n ecessary to perform the activit i es under this Agreement. Whatever
type of expenses charged for by one party may also be charged by the
other. For example, if Denver includes as an administrative expense
an amount for payroll personnel, Englewood may also, but the amount
and methodology should be based on the respective expenditures of
each party. Each party shall keep reasonable and consistent records
of its hours of direct labor and supervision, material costs, fringe
benefits and other payroll levies and equipment usage upon which its
costs are based and the methodology used by each party to calculate
such charges. Such records shall be kept for at least three calendar
years beyond the calendar year during which they were incurred, and
shall be available for inspection by representatives of the other
party during all reasonable business hours. Each party's documents
which show the method of calculation of costs shall be similarly
available for inspection.
3.2 Denver's Citv Ditch Water Rights. Nothing herein shall be
construed to affect Denver's ownership of its City Ditch Water
Rights(except as provided in paragraph 2.7).
3.3 Previous Agreements. This Agr~ement supersedes the
Agreement of· February 6, 1970 and any amendments thereto.
3.4 Colorado Law. This Agreement shall be construed under
Colorado law.
3.5 Integration. This Agreement constitutes the entire
agreement between the parties. It supersedes any prior agreements or
understandings between the parties.
3.6 Successors. The rights of each party to receive deliveries
shall be binding upon the successor.
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3.7 Payment. Charges to each party for administration,
ooeration and maintenance exoenses incurred durina each calendar year
shall be billed on or before.March 1, of the succeeding year and
payment shall be due within thirty (30) days of receipt of billing.
3.8 Charter Provisions. This Agreement is made und er and
conformable to provisions of Sections C4.14 through C4.35 of the
Charter of the City and County of Denver and the provisions of the
Charter of the City of Englewood. Insofar as applicable, said
Char ter provisions are incorporated herein and made a part hereof by
this reference, and shall supersede any apparently conflicting
provisions otherwise contained in this Agreement.
3.9 Term of Aoreement. This Agreement shall be perpetual.
January i ,
hereunder.
ATTEST:
APPROVED:
~ffe c~ive Date. This Agreement shal l be effective or.
1996 for purposes of calculating charges and deliveries
10
CITY AND COUNTY OF DENVER
acting by and through its
BOARD OF WATER COMMISSIONERS
By:~/££
President
CITY OF ENGLEWOOD, COLORADO
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Exhibit A
Example of Calculation for Determining Denver's Portion of City Ditch Costs
yiven (Example Only)
Calc:.ilation
n :1 lJ.>1<s1C:i1vDlch ." p
Englewood's operation expenses from April through October,
inclusive , and annual maintenance expenses nonh of Mclellan
Pump Station
Englewood's opera rion and maintenance expenses from
April through October, inclusive, south of Mclellan Pump
Station
Englewood's maintenance expenses from November through
March, inclusive , sou th of Mclellan Pump Station
Annual volume of water diverted under City Ditch Water Rights
Annual volume of all water delivered by Englewood to Allen
Treatment Plant other than City Ditch Water Rights
Citv Ditch Costs
S160,000
S I 0,000
$ 5,000
8, I 00 acre-feet
700 acre-feet
I) $160 ,000 (8. l 00 a.f.) $147,272 .73
(8, l 00 a.f. + 700 a.f.)
2) 60% x I 0,000 =
3) 60% x 5,000 =
Denver's Ponion of Citv D itch Costs
61% x $156,272 .73 = $95,326.37
$ 6,000
$ 3 000
$156,272 . 73
If Denver were to succeed to 20 inches of City Ditch contracts then Denver's costs would
be determined as follows:
20 inches = 0.521 cfs
38.4 inches/cfs
0.521 cfs x 6% (increase to Denver's 61 % for each cfs) = 3.12.5%
or 61% + 3 .12.5% = 64 .125%
64 .125% x $156,272.73 = $100,209 .89
Water Supply and Facilities Agreement
Exhibit "J"
Agreement between Denver and Littleton Cemetery Association dated
May 23, 1933
I . -.'l.·-·· ·./
EX-H I B IT B Q .-.
Fll .. E NO . or>lP COC. NO. d d
Agreement, made this ~\ ~ day of : 1 ·• , · \} I
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1933, between the City anci. Coun:./ o:-De nv er, actine by and
through its Board of riater Corunissioners, first party, and
I Littleton Cemetery Association, a no n-profit corporation, of
Littleto~, Colorado, second party,
I ~itness et h that whereas the first party ouns and
Jperates a cer t ain ditch takin ~ ~ater from the South ?latte
I ~!ver and ~nown as the Cit; Ditcb ; and,
I rights evidenced by one share of the capital s tock of The
Nevada Ditch Holding Conpa n y and des ires to have the point of
I div ersi on of the wate r rights evidenced by said Nevada stock
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changed to the intake of said City Ditch and desi res further to
hav e the water evidenced by said Neva da stock carried in said
I City Ditch; and,
Vlhereas, it is satisfactory to the first party to
I carry sai c water in the City Ditcb upon the terms and condi-
tions h ereinafter stated;
I lJo w, t herefo re, in c ons idera ti on of their mu tual
agreeoents the parties h ereto h ave agreed with each other as
I follows:
1. The second party at its own expense will secure
I such change of point of diversion of the water rights repre-
I sented "by its share of Hevada stock to the intak e of the City
Ditch and the first pa rty will carry such water in said City
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Ditch to a point i n the Littleton cemetery.
2 . The second p arty at its own expense will install
r a b eadga te in the e ast bank of the canal of t ?:.e City Di tcb and
a short flume lea.ding from said hea d g ate to a . ';hr ee inch Venturi
I· weir and a short f l ume leading from said weir to a pipe line
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----~PTttL"'rNQ Ci j 0 rY\C. NO d Dd
and t bence to a sump where a pwnp will be inst&lled and the
water pumped as the second party shall determine.
3. The cost of installine said headg&te, weir,
sump, pump and their appliances and maintaining the same
shall be borne by the second party.
4. The first party shall make no other charge for
carrying said water in tbe City Ditc h than the usual charge
for cc..rrying a like &.mount of City Ditch water therein.
5. The first party shall bave the right to discon-
tinue carrying said Nevada water in sc.id City Ditch at any
time 1vhen tbe carriage thereof shall interfere, in the opin-
ion of the engineers of the first party , with the carriage of
City Ditch water in said ditcb and shall also have the right
to stop such carriage in case the City Ditch is ever abandoned
es a carrier of City Ditch water.
In Witness Whereof, the parties hereto have caused
this instrument to be executed in triplicate by the proper of-
ficers of the parties h ereto as of the day of the date hereof.
/ -~·-
Secretary;
Attest;
Approved as to form;
City and County of Denver,
B~Bo~~issioners ,
.By >-~---
Pre si den r;:::
Littleton Cemetery Association,
.By '~dent.